Correlation Between BOS Better and Loop Media
Can any of the company-specific risk be diversified away by investing in both BOS Better and Loop Media 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 Loop Media 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 Loop Media, you can compare the effects of market volatilities on BOS Better and Loop Media 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 Loop Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Loop Media.
Diversification Opportunities for BOS Better and Loop Media
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Loop is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Loop Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Media 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 Loop Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Media has no effect on the direction of BOS Better i.e., BOS Better and Loop Media go up and down completely randomly.
Pair Corralation between BOS Better and Loop Media
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.26 times more return on investment than Loop Media. However, BOS Better Online is 3.79 times less risky than Loop Media. It trades about 0.05 of its potential returns per unit of risk. Loop Media is currently generating about -0.07 per unit of risk. If you would invest 223.00 in BOS Better Online on September 3, 2024 and sell it today you would earn a total of 116.00 from holding BOS Better Online or generate 52.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 84.65% |
| Values | Daily Returns |
BOS Better Online vs. Loop Media
Performance |
| Timeline |
| BOS Better Online |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BOS Better and Loop Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Loop Media
The main advantage of trading using opposite BOS Better and Loop Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Loop Media 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 Loop Media will offset losses from the drop in Loop Media's long position.| BOS Better vs. Highway Holdings Limited | BOS Better vs. QCR Holdings | BOS Better vs. Partner Communications | BOS Better vs. Acumen Pharmaceuticals |
| Loop Media vs. Summit Materials | Loop Media vs. BOS Better Online | Loop Media vs. Eldorado Gold Corp | Loop Media vs. Highway Holdings Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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