Correlation Between Minor International and Boston Omaha
Can any of the company-specific risk be diversified away by investing in both Minor International and Boston Omaha 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 Minor International and Boston Omaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International PCL and Boston Omaha Corp, you can compare the effects of market volatilities on Minor International and Boston Omaha 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 Minor International with a short position of Boston Omaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Boston Omaha.
Diversification Opportunities for Minor International and Boston Omaha
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Minor and Boston is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Minor International PCL and Boston Omaha Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha Corp and Minor International 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 Minor International PCL are associated (or correlated) with Boston Omaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Omaha Corp has no effect on the direction of Minor International i.e., Minor International and Boston Omaha go up and down completely randomly.
Pair Corralation between Minor International and Boston Omaha
Assuming the 90 days horizon Minor International PCL is expected to under-perform the Boston Omaha. But the pink sheet apears to be less risky and, when comparing its historical volatility, Minor International PCL is 1.23 times less risky than Boston Omaha. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Boston Omaha Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,536 in Boston Omaha Corp on September 14, 2024 and sell it today you would earn a total of 23.00 from holding Boston Omaha Corp or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.36% |
| Values | Daily Returns |
Minor International PCL vs. Boston Omaha Corp
Performance |
| Timeline |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boston Omaha Corp |
Minor International and Boston Omaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Boston Omaha
The main advantage of trading using opposite Minor International and Boston Omaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, Boston Omaha 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 Boston Omaha will offset losses from the drop in Boston Omaha's long position.| Minor International vs. Alaska Air Group | Minor International vs. American Airlines Group | Minor International vs. Southwest Airlines | Minor International vs. Delta Air Lines |
| Boston Omaha vs. Mirriad Advertising plc | Boston Omaha vs. INEO Tech Corp | Boston Omaha vs. Kidoz Inc | Boston Omaha vs. Marchex |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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