Correlation Between Boston Omaha and Gray Television
Can any of the company-specific risk be diversified away by investing in both Boston Omaha and Gray Television 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 Gray Television 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 Gray Television, you can compare the effects of market volatilities on Boston Omaha and Gray Television 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 Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and Gray Television.
Diversification Opportunities for Boston Omaha and Gray Television
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and Gray is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television 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 Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of Boston Omaha i.e., Boston Omaha and Gray Television go up and down completely randomly.
Pair Corralation between Boston Omaha and Gray Television
Considering the 90-day investment horizon Boston Omaha is expected to generate 2.23 times less return on investment than Gray Television. But when comparing it to its historical volatility, Boston Omaha Corp is 5.38 times less risky than Gray Television. It trades about 0.07 of its potential returns per unit of risk. Gray Television is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 748.00 in Gray Television on September 12, 2024 and sell it today you would lose (24.00) from holding Gray Television or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Omaha Corp vs. Gray Television
Performance |
| Timeline |
| Boston Omaha Corp |
| Gray Television |
Boston Omaha and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Omaha and Gray Television
The main advantage of trading using opposite Boston Omaha and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| Boston Omaha vs. Mirriad Advertising plc | Boston Omaha vs. INEO Tech Corp | Boston Omaha vs. Kidoz Inc | Boston Omaha vs. Marchex |
| Gray Television vs. SNDL Inc | Gray Television vs. Fernhill Beverage | Gray Television vs. Anheuser Busch Inbev | Gray Television vs. Aerofoam Metals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |