Correlation Between BOS Better and Stagwell
Can any of the company-specific risk be diversified away by investing in both BOS Better and Stagwell 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 Stagwell 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 Stagwell, you can compare the effects of market volatilities on BOS Better and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Stagwell.
Diversification Opportunities for BOS Better and Stagwell
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BOS and Stagwell is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of BOS Better i.e., BOS Better and Stagwell go up and down completely randomly.
Pair Corralation between BOS Better and Stagwell
Given the investment horizon of 90 days BOS Better is expected to generate 2.15 times less return on investment than Stagwell. But when comparing it to its historical volatility, BOS Better Online is 1.98 times less risky than Stagwell. It trades about 0.37 of its potential returns per unit of risk. Stagwell is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 625.00 in Stagwell on August 24, 2024 and sell it today you would earn a total of 161.00 from holding Stagwell or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Stagwell
Performance |
| Timeline |
| BOS Better Online |
| Stagwell |
BOS Better and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Stagwell
The main advantage of trading using opposite BOS Better and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell'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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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