Correlation Between US Global and BOS Better
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and BOS Better Online, you can compare the effects of market volatilities on US Global 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 US Global with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and BOS Better.
Diversification Opportunities for US Global and BOS Better
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROW and BOS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors 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 US Global 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 US Global Investors 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 US Global i.e., US Global and BOS Better go up and down completely randomly.
Pair Corralation between US Global and BOS Better
Given the investment horizon of 90 days US Global Investors is expected to under-perform the BOS Better. But the stock apears to be less risky and, when comparing its historical volatility, US Global Investors is 1.01 times less risky than BOS Better. The stock trades about -0.1 of its potential returns per unit of risk. The BOS Better Online is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 312.00 in BOS Better Online on September 13, 2024 and sell it today you would earn a total of 31.00 from holding BOS Better Online or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. BOS Better Online
Performance |
| Timeline |
| US Global Investors |
| BOS Better Online |
US Global and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and BOS Better
The main advantage of trading using opposite US Global and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| BOS Better vs. Passage Bio | BOS Better vs. Black Diamond Therapeutics | BOS Better vs. Alector | BOS Better vs. Century Therapeutics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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