Correlation Between Global E and BOS Better
Can any of the company-specific risk be diversified away by investing in both Global E 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 Global E and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and BOS Better Online, you can compare the effects of market volatilities on Global E 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 Global E with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and BOS Better.
Diversification Opportunities for Global E and BOS Better
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and BOS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online 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 Global E 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 Global E Online 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 Global E i.e., Global E and BOS Better go up and down completely randomly.
Pair Corralation between Global E and BOS Better
Given the investment horizon of 90 days Global E Online is expected to generate 2.34 times more return on investment than BOS Better. However, Global E is 2.34 times more volatile than BOS Better Online. It trades about 0.41 of its potential returns per unit of risk. BOS Better Online is currently generating about 0.36 per unit of risk. If you would invest 3,761 in Global E Online on August 24, 2024 and sell it today you would earn a total of 1,228 from holding Global E Online or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global E Online vs. BOS Better Online
Performance |
| Timeline |
| Global E Online |
| BOS Better Online |
Global E and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and BOS Better
The main advantage of trading using opposite Global E and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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