Correlation Between Boise Cascade and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both Boise Cascade and GEELY AUTOMOBILE 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 Boise Cascade and GEELY AUTOMOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boise Cascade and GEELY AUTOMOBILE, you can compare the effects of market volatilities on Boise Cascade and GEELY AUTOMOBILE 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 Boise Cascade with a short position of GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boise Cascade and GEELY AUTOMOBILE.
Diversification Opportunities for Boise Cascade and GEELY AUTOMOBILE
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boise and GEELY is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Boise Cascade and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE and Boise Cascade 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 Boise Cascade are associated (or correlated) with GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of Boise Cascade i.e., Boise Cascade and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between Boise Cascade and GEELY AUTOMOBILE
Assuming the 90 days horizon Boise Cascade is expected to generate 4.84 times less return on investment than GEELY AUTOMOBILE. But when comparing it to its historical volatility, Boise Cascade is 1.71 times less risky than GEELY AUTOMOBILE. It trades about 0.07 of its potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 171.00 in GEELY AUTOMOBILE on September 13, 2024 and sell it today you would earn a total of 23.00 from holding GEELY AUTOMOBILE or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boise Cascade vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| Boise Cascade |
| GEELY AUTOMOBILE |
Boise Cascade and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boise Cascade and GEELY AUTOMOBILE
The main advantage of trading using opposite Boise Cascade and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boise Cascade position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE's long position.| Boise Cascade vs. National Beverage Corp | Boise Cascade vs. The Boston Beer | Boise Cascade vs. THAI BEVERAGE | Boise Cascade vs. SCANSOURCE |
| GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |