Correlation Between BOS Better and Pinterest
Can any of the company-specific risk be diversified away by investing in both BOS Better and Pinterest 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 Pinterest 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 Pinterest, you can compare the effects of market volatilities on BOS Better and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Pinterest.
Diversification Opportunities for BOS Better and Pinterest
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BOS and Pinterest is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of BOS Better i.e., BOS Better and Pinterest go up and down completely randomly.
Pair Corralation between BOS Better and Pinterest
Given the investment horizon of 90 days BOS Better Online is expected to under-perform the Pinterest. But the stock apears to be less risky and, when comparing its historical volatility, BOS Better Online is 1.31 times less risky than Pinterest. The stock trades about 0.0 of its potential returns per unit of risk. The Pinterest is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,791 in Pinterest on September 3, 2024 and sell it today you would earn a total of 252.00 from holding Pinterest or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Pinterest
Performance |
| Timeline |
| BOS Better Online |
BOS Better and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Pinterest
The main advantage of trading using opposite BOS Better and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| BOS Better vs. Highway Holdings Limited | BOS Better vs. QCR Holdings | BOS Better vs. Partner Communications | BOS Better vs. Acumen Pharmaceuticals |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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