Correlation Between Boat Rocker and Ballard Power
Can any of the company-specific risk be diversified away by investing in both Boat Rocker and Ballard Power 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 Boat Rocker and Ballard Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boat Rocker Media and Ballard Power Systems, you can compare the effects of market volatilities on Boat Rocker and Ballard Power 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 Boat Rocker with a short position of Ballard Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boat Rocker and Ballard Power.
Diversification Opportunities for Boat Rocker and Ballard Power
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boat and Ballard is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Boat Rocker Media and Ballard Power Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballard Power Systems and Boat Rocker 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 Boat Rocker Media are associated (or correlated) with Ballard Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballard Power Systems has no effect on the direction of Boat Rocker i.e., Boat Rocker and Ballard Power go up and down completely randomly.
Pair Corralation between Boat Rocker and Ballard Power
Assuming the 90 days trading horizon Boat Rocker Media is expected to generate 1.18 times more return on investment than Ballard Power. However, Boat Rocker is 1.18 times more volatile than Ballard Power Systems. It trades about -0.05 of its potential returns per unit of risk. Ballard Power Systems is currently generating about -0.09 per unit of risk. If you would invest 142.00 in Boat Rocker Media on August 25, 2024 and sell it today you would lose (73.00) from holding Boat Rocker Media or give up 51.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boat Rocker Media vs. Ballard Power Systems
Performance |
| Timeline |
| Boat Rocker Media |
| Ballard Power Systems |
Boat Rocker and Ballard Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boat Rocker and Ballard Power
The main advantage of trading using opposite Boat Rocker and Ballard Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boat Rocker position performs unexpectedly, Ballard Power 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 Ballard Power will offset losses from the drop in Ballard Power's long position.| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
| Ballard Power vs. Northstar Clean Technologies | Ballard Power vs. TGS Esports | Ballard Power vs. Boat Rocker Media | Ballard Power vs. iSign Media Solutions |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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