Correlation Between Boston Partners and Frost Total
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Frost Total 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 Boston Partners and Frost Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and Frost Total Return, you can compare the effects of market volatilities on Boston Partners and Frost Total 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 Boston Partners with a short position of Frost Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Frost Total.
Diversification Opportunities for Boston Partners and Frost Total
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boston and Frost is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small and Frost Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Total Return and Boston Partners 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 Boston Partners Small are associated (or correlated) with Frost Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Total Return has no effect on the direction of Boston Partners i.e., Boston Partners and Frost Total go up and down completely randomly.
Pair Corralation between Boston Partners and Frost Total
Assuming the 90 days horizon Boston Partners Small is expected to generate 5.0 times more return on investment than Frost Total. However, Boston Partners is 5.0 times more volatile than Frost Total Return. It trades about 0.32 of its potential returns per unit of risk. Frost Total Return is currently generating about 0.09 per unit of risk. If you would invest 2,665 in Boston Partners Small on September 1, 2024 and sell it today you would earn a total of 293.00 from holding Boston Partners Small or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Boston Partners Small vs. Frost Total Return
Performance |
| Timeline |
| Boston Partners Small |
| Frost Total Return |
Boston Partners and Frost Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Frost Total
The main advantage of trading using opposite Boston Partners and Frost Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Frost Total 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 Frost Total will offset losses from the drop in Frost Total's long position.| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Rice Hall James | Boston Partners vs. Putnam Small Cap |
| Frost Total vs. American Century Etf | Frost Total vs. Boston Partners Small | Frost Total vs. Hennessy Nerstone Mid | Frost Total vs. Lord Abbett Small |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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