Correlation Between Knowles Cor and BOS Better
Can any of the company-specific risk be diversified away by investing in both Knowles Cor 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 Knowles Cor and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and BOS Better Online, you can compare the effects of market volatilities on Knowles Cor 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 Knowles Cor with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and BOS Better.
Diversification Opportunities for Knowles Cor and BOS Better
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Knowles and BOS is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor 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 Knowles Cor 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 Knowles Cor 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 Knowles Cor i.e., Knowles Cor and BOS Better go up and down completely randomly.
Pair Corralation between Knowles Cor and BOS Better
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 1.21 times less return on investment than BOS Better. In addition to that, Knowles Cor is 1.81 times more volatile than BOS Better Online. It trades about 0.17 of its total potential returns per unit of risk. BOS Better Online is currently generating about 0.36 per unit of volatility. If you would invest 297.00 in BOS Better Online on August 24, 2024 and sell it today you would earn a total of 34.00 from holding BOS Better Online or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. BOS Better Online
Performance |
| Timeline |
| Knowles Cor |
| BOS Better Online |
Knowles Cor and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and BOS Better
The main advantage of trading using opposite Knowles Cor and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor 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.| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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