Correlation Between BOS Better and AULT Old
Can any of the company-specific risk be diversified away by investing in both BOS Better and AULT Old 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 AULT Old 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 AULT Old, you can compare the effects of market volatilities on BOS Better and AULT Old 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 AULT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and AULT Old.
Diversification Opportunities for BOS Better and AULT Old
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BOS and AULT is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and AULT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AULT Old 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 AULT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AULT Old has no effect on the direction of BOS Better i.e., BOS Better and AULT Old go up and down completely randomly.
Pair Corralation between BOS Better and AULT Old
If you would invest 327.00 in BOS Better Online on October 20, 2024 and sell it today you would earn a total of 52.00 from holding BOS Better Online or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
BOS Better Online vs. AULT Old
Performance |
| Timeline |
| BOS Better Online |
| AULT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BOS Better and AULT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and AULT Old
The main advantage of trading using opposite BOS Better and AULT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, AULT Old 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 AULT Old will offset losses from the drop in AULT Old's 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 |
| AULT Old vs. Cadence Design Systems | AULT Old vs. Uber Technologies | AULT Old vs. High Performance Beverages | AULT Old vs. Cheche Group Class |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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