Bon Intangible Assets vs Common Stock Analysis
Pair Trading with Bon Natural
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Bon Natural position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bon Natural will appreciate offsetting losses from the drop in the long position's value.Moving against Bon Stock
| 0.82 | LW | Lamb Weston Holdings | PairCorr |
| 0.7 | LSF | Laird Superfood Upward Rally | PairCorr |
| 0.5 | JVA | Coffee Holding | PairCorr |
| 0.48 | FRPT | Freshpet | PairCorr |
| 0.42 | K | Kellanova | PairCorr |
The ability to find closely correlated positions to Bon Natural could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bon Natural when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bon Natural - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bon Natural Life to buy it.
The correlation of Bon Natural is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bon Natural moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bon Natural Life moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Bon Natural can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bon Natural Life. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Pharmaceutical Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bon Natural. If investors know Bon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bon Natural listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Bon Natural Life is measured differently than its book value, which is the value of Bon that is recorded on the company's balance sheet. Investors also form their own opinion of Bon Natural's value that differs from its market value or its book value, called intrinsic value, which is Bon Natural's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bon Natural's market value can be influenced by many factors that don't directly affect Bon Natural's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bon Natural's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bon Natural is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bon Natural's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.