Correlation Between BOS Better and Fluent
Can any of the company-specific risk be diversified away by investing in both BOS Better and Fluent 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 Fluent 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 Fluent Inc, you can compare the effects of market volatilities on BOS Better and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Fluent.
Diversification Opportunities for BOS Better and Fluent
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BOS and Fluent is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of BOS Better i.e., BOS Better and Fluent go up and down completely randomly.
Pair Corralation between BOS Better and Fluent
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.28 times more return on investment than Fluent. However, BOS Better Online is 3.51 times less risky than Fluent. It trades about 0.37 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.12 per unit of risk. If you would invest 297.00 in BOS Better Online on August 24, 2024 and sell it today you would earn a total of 34.00 from holding BOS Better Online or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Fluent Inc
Performance |
| Timeline |
| BOS Better Online |
| Fluent Inc |
BOS Better and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Fluent
The main advantage of trading using opposite BOS Better and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent'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 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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