Correlation Between Boyd Group and Topicus
Can any of the company-specific risk be diversified away by investing in both Boyd Group and Topicus 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 Boyd Group and Topicus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Group Services and Topicus, you can compare the effects of market volatilities on Boyd Group and Topicus 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 Boyd Group with a short position of Topicus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Group and Topicus.
Diversification Opportunities for Boyd Group and Topicus
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and Topicus is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Group Services and Topicus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topicus and Boyd Group 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 Boyd Group Services are associated (or correlated) with Topicus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topicus has no effect on the direction of Boyd Group i.e., Boyd Group and Topicus go up and down completely randomly.
Pair Corralation between Boyd Group and Topicus
Assuming the 90 days trading horizon Boyd Group Services is expected to under-perform the Topicus. But the stock apears to be less risky and, when comparing its historical volatility, Boyd Group Services is 1.11 times less risky than Topicus. The stock trades about -0.26 of its potential returns per unit of risk. The Topicus is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12,094 in Topicus on September 14, 2024 and sell it today you would earn a total of 107.00 from holding Topicus or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Group Services vs. Topicus
Performance |
| Timeline |
| Boyd Group Services |
| Topicus |
Boyd Group and Topicus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Group and Topicus
The main advantage of trading using opposite Boyd Group and Topicus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Group position performs unexpectedly, Topicus 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 Topicus will offset losses from the drop in Topicus' long position.| Boyd Group vs. Colliers International Group | Boyd Group vs. Premium Brands Holdings | Boyd Group vs. FirstService Corp | Boyd Group vs. Enghouse Systems |
| Topicus vs. Constellation Software | Topicus vs. Converge Technology Solutions | Topicus vs. Enghouse Systems | Topicus vs. Dye Durham |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |