Correlation Between BOS Better and John B
Can any of the company-specific risk be diversified away by investing in both BOS Better and John B 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 John B 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 John B Sanfilippo, you can compare the effects of market volatilities on BOS Better and John B 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 John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and John B.
Diversification Opportunities for BOS Better and John B
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BOS and John is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo 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 John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of BOS Better i.e., BOS Better and John B go up and down completely randomly.
Pair Corralation between BOS Better and John B
Given the investment horizon of 90 days BOS Better Online is expected to generate 1.06 times more return on investment than John B. However, BOS Better is 1.06 times more volatile than John B Sanfilippo. It trades about -0.12 of its potential returns per unit of risk. John B Sanfilippo is currently generating about -0.28 per unit of risk. If you would invest 405.00 in BOS Better Online on November 5, 2024 and sell it today you would lose (33.00) from holding BOS Better Online or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. John B Sanfilippo
Performance |
| Timeline |
| BOS Better Online |
| John B Sanfilippo |
BOS Better and John B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and John B
The main advantage of trading using opposite BOS Better and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, John B 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 John B will offset losses from the drop in John B'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 |
| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |