Correlation Between BOS Better and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both BOS Better and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment, you can compare the effects of market volatilities on BOS Better and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Dolphin Entertainment.
Diversification Opportunities for BOS Better and Dolphin Entertainment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BOS and Dolphin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of BOS Better i.e., BOS Better and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between BOS Better and Dolphin Entertainment
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.58 times more return on investment than Dolphin Entertainment. However, BOS Better Online is 1.74 times less risky than Dolphin Entertainment. It trades about 0.05 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.05 per unit of risk. If you would invest 216.00 in BOS Better Online on August 27, 2024 and sell it today you would earn a total of 119.00 from holding BOS Better Online or generate 55.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Dolphin Entertainment
Performance |
| Timeline |
| BOS Better Online |
| Dolphin Entertainment |
BOS Better and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Dolphin Entertainment
The main advantage of trading using opposite BOS Better and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment'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 |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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