Correlation Between BOS Better and CATERPILLAR
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By analyzing existing cross correlation between BOS Better Online and CATERPILLAR INC 53, you can compare the effects of market volatilities on BOS Better and CATERPILLAR 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 CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and CATERPILLAR.
Diversification Opportunities for BOS Better and CATERPILLAR
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BOS and CATERPILLAR is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and CATERPILLAR INC 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR INC 53 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 CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR INC 53 has no effect on the direction of BOS Better i.e., BOS Better and CATERPILLAR go up and down completely randomly.
Pair Corralation between BOS Better and CATERPILLAR
Given the investment horizon of 90 days BOS Better Online is expected to generate 1.93 times more return on investment than CATERPILLAR. However, BOS Better is 1.93 times more volatile than CATERPILLAR INC 53. It trades about 0.08 of its potential returns per unit of risk. CATERPILLAR INC 53 is currently generating about 0.02 per unit of risk. If you would invest 278.00 in BOS Better Online on September 3, 2024 and sell it today you would earn a total of 61.00 from holding BOS Better Online or generate 21.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.64% |
| Values | Daily Returns |
BOS Better Online vs. CATERPILLAR INC 53
Performance |
| Timeline |
| BOS Better Online |
| CATERPILLAR INC 53 |
BOS Better and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and CATERPILLAR
The main advantage of trading using opposite BOS Better and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR's long position.| BOS Better vs. Highway Holdings Limited | BOS Better vs. QCR Holdings | BOS Better vs. Partner Communications | BOS Better vs. Acumen Pharmaceuticals |
| CATERPILLAR vs. BOS Better Online | CATERPILLAR vs. Porvair plc | CATERPILLAR vs. Boston Omaha Corp | CATERPILLAR vs. Finnair Oyj |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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