Correlation Between Boat Rocker and New Zealand
Can any of the company-specific risk be diversified away by investing in both Boat Rocker and New Zealand 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 New Zealand 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 New Zealand Energy, you can compare the effects of market volatilities on Boat Rocker and New Zealand 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 New Zealand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boat Rocker and New Zealand.
Diversification Opportunities for Boat Rocker and New Zealand
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boat and New is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Boat Rocker Media and New Zealand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Zealand Energy 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 New Zealand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Zealand Energy has no effect on the direction of Boat Rocker i.e., Boat Rocker and New Zealand go up and down completely randomly.
Pair Corralation between Boat Rocker and New Zealand
Assuming the 90 days trading horizon Boat Rocker Media is expected to under-perform the New Zealand. But the stock apears to be less risky and, when comparing its historical volatility, Boat Rocker Media is 2.25 times less risky than New Zealand. The stock trades about -0.13 of its potential returns per unit of risk. The New Zealand Energy is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 57.00 in New Zealand Energy on September 12, 2024 and sell it today you would earn a total of 43.00 from holding New Zealand Energy or generate 75.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boat Rocker Media vs. New Zealand Energy
Performance |
| Timeline |
| Boat Rocker Media |
| New Zealand Energy |
Boat Rocker and New Zealand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boat Rocker and New Zealand
The main advantage of trading using opposite Boat Rocker and New Zealand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boat Rocker position performs unexpectedly, New Zealand 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 New Zealand will offset losses from the drop in New Zealand's long position.| Boat Rocker vs. Berkshire Hathaway CDR | Boat Rocker vs. Microsoft Corp CDR | Boat Rocker vs. Apple Inc CDR | Boat Rocker vs. Alphabet Inc CDR |
| New Zealand vs. iSign Media Solutions | New Zealand vs. Boat Rocker Media | New Zealand vs. Stampede Drilling | New Zealand vs. Champion Gaming Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |