Correlation Between Boston Omaha and Fluent
Can any of the company-specific risk be diversified away by investing in both Boston Omaha and Fluent 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 Fluent 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 Fluent Inc, you can compare the effects of market volatilities on Boston Omaha and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and Fluent.
Diversification Opportunities for Boston Omaha and Fluent
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boston and Fluent is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Boston Omaha i.e., Boston Omaha and Fluent go up and down completely randomly.
Pair Corralation between Boston Omaha and Fluent
Considering the 90-day investment horizon Boston Omaha is expected to generate 2.1 times less return on investment than Fluent. But when comparing it to its historical volatility, Boston Omaha Corp is 1.47 times less risky than Fluent. It trades about 0.11 of its potential returns per unit of risk. Fluent Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Fluent Inc on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Fluent Inc or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Omaha Corp vs. Fluent Inc
Performance |
| Timeline |
| Boston Omaha Corp |
| Fluent Inc |
Boston Omaha and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Omaha and Fluent
The main advantage of trading using opposite Boston Omaha and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Boston Omaha vs. Integral Ad Science | Boston Omaha vs. Cardlytics | Boston Omaha vs. Cimpress NV | Boston Omaha vs. QuinStreet |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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