Correlation Between BOS BETTER and Global Ship
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Global Ship 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 BOS BETTER and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and Global Ship Lease, you can compare the effects of market volatilities on BOS BETTER and Global Ship 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 BOS BETTER with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Global Ship.
Diversification Opportunities for BOS BETTER and Global Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and BOS BETTER 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 BOS BETTER ONLINE are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of BOS BETTER i.e., BOS BETTER and Global Ship go up and down completely randomly.
Pair Corralation between BOS BETTER and Global Ship
If you would invest 236.00 in BOS BETTER ONLINE on September 4, 2024 and sell it today you would earn a total of 0.00 from holding BOS BETTER ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. Global Ship Lease
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Global Ship Lease |
BOS BETTER and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Global Ship
The main advantage of trading using opposite BOS BETTER and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| BOS BETTER vs. TOTAL GABON | BOS BETTER vs. Walgreens Boots Alliance | BOS BETTER vs. Peak Resources Limited |
| Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI Holdings | Global Ship vs. Origin Agritech |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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