Correlation Between HomeToGo and BOYD GROUP
Can any of the company-specific risk be diversified away by investing in both HomeToGo and BOYD GROUP 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 HomeToGo and BOYD GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HomeToGo SE and BOYD GROUP SERVICES, you can compare the effects of market volatilities on HomeToGo and BOYD GROUP 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 HomeToGo with a short position of BOYD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeToGo and BOYD GROUP.
Diversification Opportunities for HomeToGo and BOYD GROUP
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HomeToGo and BOYD is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HomeToGo SE and BOYD GROUP SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOYD GROUP SERVICES and HomeToGo 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 HomeToGo SE are associated (or correlated) with BOYD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOYD GROUP SERVICES has no effect on the direction of HomeToGo i.e., HomeToGo and BOYD GROUP go up and down completely randomly.
Pair Corralation between HomeToGo and BOYD GROUP
Assuming the 90 days trading horizon HomeToGo SE is expected to generate 1.63 times more return on investment than BOYD GROUP. However, HomeToGo is 1.63 times more volatile than BOYD GROUP SERVICES. It trades about 0.12 of its potential returns per unit of risk. BOYD GROUP SERVICES is currently generating about -0.01 per unit of risk. If you would invest 169.00 in HomeToGo SE on September 5, 2024 and sell it today you would earn a total of 48.00 from holding HomeToGo SE or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.85% |
| Values | Daily Returns |
HomeToGo SE vs. BOYD GROUP SERVICES
Performance |
| Timeline |
| HomeToGo SE |
| BOYD GROUP SERVICES |
HomeToGo and BOYD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HomeToGo and BOYD GROUP
The main advantage of trading using opposite HomeToGo and BOYD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeToGo position performs unexpectedly, BOYD GROUP 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 BOYD GROUP will offset losses from the drop in BOYD GROUP's long position.| HomeToGo vs. Alphabet Class A | HomeToGo vs. Meta Platforms | HomeToGo vs. Meta Platforms | HomeToGo vs. Prosus NV |
| BOYD GROUP vs. Frontdoor | BOYD GROUP vs. CVS Group plc | BOYD GROUP vs. Gesundheitswelt Chiemgau AG | BOYD GROUP vs. Musti Group Oyj |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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