Correlation Between Boston Omaha and Entegris
Can any of the company-specific risk be diversified away by investing in both Boston Omaha and Entegris 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 Boston Omaha and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Omaha Corp and Entegris, you can compare the effects of market volatilities on Boston Omaha and Entegris 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 Boston Omaha with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and Entegris.
Diversification Opportunities for Boston Omaha and Entegris
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and Entegris is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Boston Omaha 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 Boston Omaha Corp are associated (or correlated) with Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Boston Omaha i.e., Boston Omaha and Entegris go up and down completely randomly.
Pair Corralation between Boston Omaha and Entegris
Considering the 90-day investment horizon Boston Omaha Corp is expected to under-perform the Entegris. But the stock apears to be less risky and, when comparing its historical volatility, Boston Omaha Corp is 1.38 times less risky than Entegris. The stock trades about -0.04 of its potential returns per unit of risk. The Entegris is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,087 in Entegris on December 12, 2024 and sell it today you would earn a total of 1,298 from holding Entegris or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Omaha Corp vs. Entegris
Performance |
| Timeline |
| Boston Omaha Corp |
| Entegris |
Boston Omaha and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Omaha and Entegris
The main advantage of trading using opposite Boston Omaha and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Boston Omaha vs. Integral Ad Science | ||
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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