Correlation Between BOS BETTER and Deutsche Lufthansa
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Deutsche Lufthansa 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 Deutsche Lufthansa 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 Deutsche Lufthansa AG, you can compare the effects of market volatilities on BOS BETTER and Deutsche Lufthansa 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 Deutsche Lufthansa. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Deutsche Lufthansa.
Diversification Opportunities for BOS BETTER and Deutsche Lufthansa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Deutsche Lufthansa AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Lufthansa 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 Deutsche Lufthansa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Lufthansa has no effect on the direction of BOS BETTER i.e., BOS BETTER and Deutsche Lufthansa go up and down completely randomly.
Pair Corralation between BOS BETTER and Deutsche Lufthansa
If you would invest 629.00 in Deutsche Lufthansa AG on November 27, 2024 and sell it today you would earn a total of 29.00 from holding Deutsche Lufthansa AG or generate 4.61% 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. Deutsche Lufthansa AG
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Deutsche Lufthansa |
BOS BETTER and Deutsche Lufthansa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Deutsche Lufthansa
The main advantage of trading using opposite BOS BETTER and Deutsche Lufthansa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Deutsche Lufthansa 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 Deutsche Lufthansa will offset losses from the drop in Deutsche Lufthansa's long position.| BOS BETTER vs. EEDUCATION ALBERT AB | BOS BETTER vs. Xinhua Winshare Publishing | BOS BETTER vs. EMBARK EDUCATION LTD | BOS BETTER vs. TAL Education Group |
| Deutsche Lufthansa vs. Platinum Investment Management | Deutsche Lufthansa vs. CREO MEDICAL GRP | Deutsche Lufthansa vs. IMAGIN MEDICAL INC | Deutsche Lufthansa vs. Diamyd Medical AB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |