Correlation Between BOS Better and LithiumBank Resources
Can any of the company-specific risk be diversified away by investing in both BOS Better and LithiumBank Resources 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 LithiumBank Resources 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 LithiumBank Resources Corp, you can compare the effects of market volatilities on BOS Better and LithiumBank Resources 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 LithiumBank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and LithiumBank Resources.
Diversification Opportunities for BOS Better and LithiumBank Resources
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and LithiumBank is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and LithiumBank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LithiumBank Resources 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 LithiumBank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LithiumBank Resources has no effect on the direction of BOS Better i.e., BOS Better and LithiumBank Resources go up and down completely randomly.
Pair Corralation between BOS Better and LithiumBank Resources
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.56 times more return on investment than LithiumBank Resources. However, BOS Better Online is 1.79 times less risky than LithiumBank Resources. It trades about 0.05 of its potential returns per unit of risk. LithiumBank Resources Corp is currently generating about -0.03 per unit of risk. If you would invest 215.00 in BOS Better Online on September 4, 2024 and sell it today you would earn a total of 128.00 from holding BOS Better Online or generate 59.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
BOS Better Online vs. LithiumBank Resources Corp
Performance |
| Timeline |
| BOS Better Online |
| LithiumBank Resources |
BOS Better and LithiumBank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and LithiumBank Resources
The main advantage of trading using opposite BOS Better and LithiumBank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, LithiumBank Resources 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 LithiumBank Resources will offset losses from the drop in LithiumBank Resources' 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 |
| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Avarone Metals | LithiumBank Resources vs. Adriatic Metals PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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