Correlation Between Booz Allen and NFT
Can any of the company-specific risk be diversified away by investing in both Booz Allen and NFT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Booz Allen and NFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booz Allen Hamilton and NFT Limited, you can compare the effects of market volatilities on Booz Allen and NFT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Booz Allen with a short position of NFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booz Allen and NFT.
Diversification Opportunities for Booz Allen and NFT
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Booz and NFT is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Booz Allen Hamilton and NFT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFT Limited and Booz Allen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Booz Allen Hamilton are associated (or correlated) with NFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFT Limited has no effect on the direction of Booz Allen i.e., Booz Allen and NFT go up and down completely randomly.
Pair Corralation between Booz Allen and NFT
Considering the 90-day investment horizon Booz Allen Hamilton is expected to generate 0.19 times more return on investment than NFT. However, Booz Allen Hamilton is 5.26 times less risky than NFT. It trades about -0.28 of its potential returns per unit of risk. NFT Limited is currently generating about -0.1 per unit of risk. If you would invest 18,539 in Booz Allen Hamilton on August 27, 2024 and sell it today you would lose (3,617) from holding Booz Allen Hamilton or give up 19.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Booz Allen Hamilton vs. NFT Limited
Performance |
| Timeline |
| Booz Allen Hamilton |
| NFT Limited |
Booz Allen and NFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Booz Allen and NFT
The main advantage of trading using opposite Booz Allen and NFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booz Allen position performs unexpectedly, NFT 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 NFT will offset losses from the drop in NFT's long position.| Booz Allen vs. Huron Consulting Group | Booz Allen vs. CRA International | Booz Allen vs. Forrester Research | Booz Allen vs. Exponent |
| NFT vs. Freedom Bank of | NFT vs. Commonwealth Bank of | NFT vs. Juniata Valley Financial | NFT vs. Summa Silver Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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