Correlation Between Boise Cascade and SCANDMEDICAL SOLDK
Can any of the company-specific risk be diversified away by investing in both Boise Cascade and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boise Cascade and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on Boise Cascade and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boise Cascade and SCANDMEDICAL SOLDK.
Diversification Opportunities for Boise Cascade and SCANDMEDICAL SOLDK
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boise and SCANDMEDICAL is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Boise Cascade and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of Boise Cascade i.e., Boise Cascade and SCANDMEDICAL SOLDK go up and down completely randomly.
Pair Corralation between Boise Cascade and SCANDMEDICAL SOLDK
Assuming the 90 days horizon Boise Cascade is expected to generate 0.75 times more return on investment than SCANDMEDICAL SOLDK. However, Boise Cascade is 1.33 times less risky than SCANDMEDICAL SOLDK. It trades about 0.02 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about -0.01 per unit of risk. If you would invest 13,410 in Boise Cascade on September 14, 2024 and sell it today you would earn a total of 35.00 from holding Boise Cascade or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boise Cascade vs. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| Boise Cascade |
| SCANDMEDICAL SOLDK 040 |
Boise Cascade and SCANDMEDICAL SOLDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boise Cascade and SCANDMEDICAL SOLDK
The main advantage of trading using opposite Boise Cascade and SCANDMEDICAL SOLDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boise Cascade position performs unexpectedly, SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK will offset losses from the drop in SCANDMEDICAL SOLDK's long position.| Boise Cascade vs. SCANDMEDICAL SOLDK 040 | Boise Cascade vs. CompuGroup Medical SE | Boise Cascade vs. ADRIATIC METALS LS 013355 | Boise Cascade vs. GREENX METALS LTD |
| SCANDMEDICAL SOLDK vs. Align Technology | SCANDMEDICAL SOLDK vs. Superior Plus Corp | SCANDMEDICAL SOLDK vs. SIVERS SEMICONDUCTORS AB | SCANDMEDICAL SOLDK vs. Norsk Hydro ASA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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