Correlation Between Boxer Retail and Hosken Consolidated
Can any of the company-specific risk be diversified away by investing in both Boxer Retail and Hosken Consolidated 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 Boxer Retail and Hosken Consolidated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxer Retail and Hosken Consolidated Investments, you can compare the effects of market volatilities on Boxer Retail and Hosken Consolidated 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 Boxer Retail with a short position of Hosken Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxer Retail and Hosken Consolidated.
Diversification Opportunities for Boxer Retail and Hosken Consolidated
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boxer and Hosken is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Boxer Retail and Hosken Consolidated Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hosken Consolidated and Boxer Retail 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 Boxer Retail are associated (or correlated) with Hosken Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hosken Consolidated has no effect on the direction of Boxer Retail i.e., Boxer Retail and Hosken Consolidated go up and down completely randomly.
Pair Corralation between Boxer Retail and Hosken Consolidated
Assuming the 90 days trading horizon Boxer Retail is expected to generate 1.55 times more return on investment than Hosken Consolidated. However, Boxer Retail is 1.55 times more volatile than Hosken Consolidated Investments. It trades about 0.17 of its potential returns per unit of risk. Hosken Consolidated Investments is currently generating about -0.14 per unit of risk. If you would invest 640,000 in Boxer Retail on October 23, 2024 and sell it today you would earn a total of 30,000 from holding Boxer Retail or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Boxer Retail vs. Hosken Consolidated Investment
Performance |
| Timeline |
| Boxer Retail |
| Hosken Consolidated |
Boxer Retail and Hosken Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxer Retail and Hosken Consolidated
The main advantage of trading using opposite Boxer Retail and Hosken Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxer Retail position performs unexpectedly, Hosken Consolidated 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 Hosken Consolidated will offset losses from the drop in Hosken Consolidated's long position.| Boxer Retail vs. Prosus NV | Boxer Retail vs. Compagnie Financire Richemont | Boxer Retail vs. British American Tobacco | Boxer Retail vs. Glencore PLC |
| Hosken Consolidated vs. Harmony Gold Mining | Hosken Consolidated vs. City Lodge Hotels | Hosken Consolidated vs. Zeder Investments | Hosken Consolidated vs. Brimstone Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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