Correlation Between Bank and BOS Better
Can any of the company-specific risk be diversified away by investing in both Bank and BOS Better 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 Bank and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank and BOS Better Online, you can compare the effects of market volatilities on Bank and BOS Better 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 Bank with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank and BOS Better.
Diversification Opportunities for Bank and BOS Better
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and BOS is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online and Bank 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 Bank are associated (or correlated) with BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Bank i.e., Bank and BOS Better go up and down completely randomly.
Pair Corralation between Bank and BOS Better
If you would invest 296.00 in BOS Better Online on August 31, 2024 and sell it today you would earn a total of 43.00 from holding BOS Better Online or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Bank vs. BOS Better Online
Performance |
| Timeline |
| Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BOS Better Online |
Bank and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank and BOS Better
The main advantage of trading using opposite Bank and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.The idea behind Bank and BOS Better Online pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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