Correlation Between BOS Better and ScanSource
Can any of the company-specific risk be diversified away by investing in both BOS Better and ScanSource 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 ScanSource 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 ScanSource, you can compare the effects of market volatilities on BOS Better and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and ScanSource.
Diversification Opportunities for BOS Better and ScanSource
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BOS and ScanSource is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of BOS Better i.e., BOS Better and ScanSource go up and down completely randomly.
Pair Corralation between BOS Better and ScanSource
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.45 times more return on investment than ScanSource. However, BOS Better Online is 2.24 times less risky than ScanSource. It trades about 0.53 of its potential returns per unit of risk. ScanSource is currently generating about 0.22 per unit of risk. If you would invest 292.00 in BOS Better Online on September 3, 2024 and sell it today you would earn a total of 47.00 from holding BOS Better Online or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. ScanSource
Performance |
| Timeline |
| BOS Better Online |
| ScanSource |
BOS Better and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and ScanSource
The main advantage of trading using opposite BOS Better and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource's long position.| BOS Better vs. Highway Holdings Limited | BOS Better vs. QCR Holdings | BOS Better vs. Partner Communications | BOS Better vs. Acumen Pharmaceuticals |
| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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