Correlation Between Boston Omaha and Energy
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By analyzing existing cross correlation between Boston Omaha Corp and Energy Transfer 7125, you can compare the effects of market volatilities on Boston Omaha and Energy 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 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and Energy.
Diversification Opportunities for Boston Omaha and Energy
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and Energy is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Energy Transfer 7125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Transfer 7125 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 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Transfer 7125 has no effect on the direction of Boston Omaha i.e., Boston Omaha and Energy go up and down completely randomly.
Pair Corralation between Boston Omaha and Energy
Considering the 90-day investment horizon Boston Omaha Corp is expected to generate 0.5 times more return on investment than Energy. However, Boston Omaha Corp is 1.99 times less risky than Energy. It trades about 0.07 of its potential returns per unit of risk. Energy Transfer 7125 is currently generating about 0.02 per unit of risk. If you would invest 1,438 in Boston Omaha Corp on September 12, 2024 and sell it today you would earn a total of 88.50 from holding Boston Omaha Corp or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Boston Omaha Corp vs. Energy Transfer 7125
Performance |
| Timeline |
| Boston Omaha Corp |
| Energy Transfer 7125 |
Boston Omaha and Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Omaha and Energy
The main advantage of trading using opposite Boston Omaha and Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, Energy 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 Energy will offset losses from the drop in Energy's long position.| Boston Omaha vs. Mirriad Advertising plc | Boston Omaha vs. INEO Tech Corp | Boston Omaha vs. Kidoz Inc | Boston Omaha vs. Marchex |
| Energy vs. Diamond Estates Wines | Energy vs. Boston Beer | Energy vs. Ambev SA ADR | Energy vs. High Performance Beverages |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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