Correlation Between BOS Better and US Global
Can any of the company-specific risk be diversified away by investing in both BOS Better and US Global 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 US Global 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 US Global Investors, you can compare the effects of market volatilities on BOS Better and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and US Global.
Diversification Opportunities for BOS Better and US Global
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BOS and GROW is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of BOS Better i.e., BOS Better and US Global go up and down completely randomly.
Pair Corralation between BOS Better and US Global
Given the investment horizon of 90 days BOS Better Online is expected to generate 1.01 times more return on investment than US Global. However, BOS Better is 1.01 times more volatile than US Global Investors. It trades about 0.34 of its potential returns per unit of risk. US Global Investors is currently generating about -0.1 per unit of risk. If you would invest 312.00 in BOS Better Online on September 13, 2024 and sell it today you would earn a total of 31.00 from holding BOS Better Online or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. US Global Investors
Performance |
| Timeline |
| BOS Better Online |
| US Global Investors |
BOS Better and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and US Global
The main advantage of trading using opposite BOS Better and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| BOS Better vs. Passage Bio | BOS Better vs. Black Diamond Therapeutics | BOS Better vs. Alector | BOS Better vs. Century Therapeutics |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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