Correlation Between BOS BETTER and Rheinmetall
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Rheinmetall 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 Rheinmetall 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 Rheinmetall AG, you can compare the effects of market volatilities on BOS BETTER and Rheinmetall 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 Rheinmetall. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Rheinmetall.
Diversification Opportunities for BOS BETTER and Rheinmetall
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Rheinmetall is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Rheinmetall AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rheinmetall AG 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 Rheinmetall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rheinmetall AG has no effect on the direction of BOS BETTER i.e., BOS BETTER and Rheinmetall go up and down completely randomly.
Pair Corralation between BOS BETTER and Rheinmetall
If you would invest 52,996 in Rheinmetall AG on November 7, 2024 and sell it today you would earn a total of 22,924 from holding Rheinmetall AG or generate 43.26% 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. Rheinmetall AG
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Rheinmetall AG |
BOS BETTER and Rheinmetall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Rheinmetall
The main advantage of trading using opposite BOS BETTER and Rheinmetall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Rheinmetall 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 Rheinmetall will offset losses from the drop in Rheinmetall's long position.| BOS BETTER vs. USWE SPORTS AB | BOS BETTER vs. Columbia Sportswear | BOS BETTER vs. ePlay Digital | BOS BETTER vs. PATTIES FOODS |
| Rheinmetall vs. International Consolidated Airlines | Rheinmetall vs. SINGAPORE AIRLINES | Rheinmetall vs. Singapore Airlines Limited | Rheinmetall vs. OPERA SOFTWARE |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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