Correlation Between BOS BETTER and FREY EO
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and FREY EO 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 FREY EO 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 FREY EO 250, you can compare the effects of market volatilities on BOS BETTER and FREY EO 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 FREY EO. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and FREY EO.
Diversification Opportunities for BOS BETTER and FREY EO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and FREY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and FREY EO 250 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREY EO 250 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 FREY EO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREY EO 250 has no effect on the direction of BOS BETTER i.e., BOS BETTER and FREY EO go up and down completely randomly.
Pair Corralation between BOS BETTER and FREY EO
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. FREY EO 250
Performance |
| Timeline |
| BOS BETTER ONLINE |
| FREY EO 250 |
BOS BETTER and FREY EO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and FREY EO
The main advantage of trading using opposite BOS BETTER and FREY EO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, FREY EO 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 FREY EO will offset losses from the drop in FREY EO's long position.| BOS BETTER vs. TOTAL GABON | BOS BETTER vs. Walgreens Boots Alliance | BOS BETTER vs. Peak Resources Limited |
| FREY EO vs. WFD Unibail Rodamco | FREY EO vs. Superior Plus Corp | FREY EO vs. Origin Agritech | FREY EO vs. Identiv |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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