Correlation Between BOS Better and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both BOS Better and AerCap Holdings 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 AerCap Holdings 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 AerCap Holdings NV, you can compare the effects of market volatilities on BOS Better and AerCap Holdings 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 AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and AerCap Holdings.
Diversification Opportunities for BOS Better and AerCap Holdings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BOS and AerCap is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and AerCap Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerCap Holdings NV 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 AerCap Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerCap Holdings NV has no effect on the direction of BOS Better i.e., BOS Better and AerCap Holdings go up and down completely randomly.
Pair Corralation between BOS Better and AerCap Holdings
Given the investment horizon of 90 days BOS Better Online is expected to generate 1.17 times more return on investment than AerCap Holdings. However, BOS Better is 1.17 times more volatile than AerCap Holdings NV. It trades about 0.18 of its potential returns per unit of risk. AerCap Holdings NV is currently generating about 0.1 per unit of risk. If you would invest 282.00 in BOS Better Online on August 31, 2024 and sell it today you would earn a total of 49.00 from holding BOS Better Online or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. AerCap Holdings NV
Performance |
| Timeline |
| BOS Better Online |
| AerCap Holdings NV |
BOS Better and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and AerCap Holdings
The main advantage of trading using opposite BOS Better and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, AerCap Holdings 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 AerCap Holdings will offset losses from the drop in AerCap Holdings' long position.| BOS Better vs. Mynaric AG ADR | BOS Better vs. Knowles Cor | BOS Better vs. Comtech Telecommunications Corp | BOS Better vs. Ituran Location and |
| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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