Correlation Between BOS BETTER and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Electronic Arts 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 Electronic Arts 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 Electronic Arts, you can compare the effects of market volatilities on BOS BETTER and Electronic Arts 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 Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Electronic Arts.
Diversification Opportunities for BOS BETTER and Electronic Arts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Electronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts 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 Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of BOS BETTER i.e., BOS BETTER and Electronic Arts go up and down completely randomly.
Pair Corralation between BOS BETTER and Electronic Arts
If you would invest 236.00 in BOS BETTER ONLINE on November 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 | 95.45% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. Electronic Arts
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Electronic Arts |
BOS BETTER and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Electronic Arts
The main advantage of trading using opposite BOS BETTER and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| BOS BETTER vs. National Retail Properties | BOS BETTER vs. H2O Retailing | BOS BETTER vs. CarsalesCom | BOS BETTER vs. Salesforce |
| Electronic Arts vs. Nanjing Panda Electronics | Electronic Arts vs. Arrow Electronics | Electronic Arts vs. ALERION CLEANPOWER | Electronic Arts vs. Benchmark Electronics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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