Correlation Between BOS BETTER and Postal Savings
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Postal Savings 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 Postal Savings 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 Postal Savings Bank, you can compare the effects of market volatilities on BOS BETTER and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Postal Savings.
Diversification Opportunities for BOS BETTER and Postal Savings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Postal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of BOS BETTER i.e., BOS BETTER and Postal Savings go up and down completely randomly.
Pair Corralation between BOS BETTER and Postal Savings
If you would invest 54.00 in Postal Savings Bank on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Postal Savings Bank 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. Postal Savings Bank
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Postal Savings Bank |
BOS BETTER and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Postal Savings
The main advantage of trading using opposite BOS BETTER and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| BOS BETTER vs. Apple Inc | BOS BETTER vs. Apple Inc | BOS BETTER vs. Superior Plus Corp | BOS BETTER vs. SIVERS SEMICONDUCTORS AB |
| Postal Savings vs. Perdoceo Education | Postal Savings vs. STRAYER EDUCATION | Postal Savings vs. Costco Wholesale Corp | Postal Savings vs. Tsingtao Brewery |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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