Correlation Between BOS BETTER and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and CITY OFFICE 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 CITY OFFICE 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 CITY OFFICE REIT, you can compare the effects of market volatilities on BOS BETTER and CITY OFFICE 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 CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and CITY OFFICE.
Diversification Opportunities for BOS BETTER and CITY OFFICE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and CITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT 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 CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of BOS BETTER i.e., BOS BETTER and CITY OFFICE go up and down completely randomly.
Pair Corralation between BOS BETTER and CITY OFFICE
If you would invest 236.00 in BOS BETTER ONLINE on October 17, 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. CITY OFFICE REIT
Performance |
| Timeline |
| BOS BETTER ONLINE |
| CITY OFFICE REIT |
BOS BETTER and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and CITY OFFICE
The main advantage of trading using opposite BOS BETTER and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, CITY OFFICE 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.| BOS BETTER vs. AM EAGLE OUTFITTERS | BOS BETTER vs. Merit Medical Systems | BOS BETTER vs. URBAN OUTFITTERS | BOS BETTER vs. CarsalesCom |
| CITY OFFICE vs. PNC Financial Services | CITY OFFICE vs. American Eagle Outfitters | CITY OFFICE vs. BOS BETTER ONLINE | CITY OFFICE vs. Urban Outfitters |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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