Correlation Between BOSTON and BBB Foods
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By analyzing existing cross correlation between BOSTON PPTYS LTD and BBB Foods, you can compare the effects of market volatilities on BOSTON and BBB Foods 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 BOSTON with a short position of BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOSTON and BBB Foods.
Diversification Opportunities for BOSTON and BBB Foods
Good diversification
The 3 months correlation between BOSTON and BBB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BOSTON PPTYS LTD and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods and BOSTON 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 BOSTON PPTYS LTD are associated (or correlated) with BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of BOSTON i.e., BOSTON and BBB Foods go up and down completely randomly.
Pair Corralation between BOSTON and BBB Foods
Assuming the 90 days trading horizon BOSTON is expected to generate 42.07 times less return on investment than BBB Foods. But when comparing it to its historical volatility, BOSTON PPTYS LTD is 5.31 times less risky than BBB Foods. It trades about 0.01 of its potential returns per unit of risk. BBB Foods is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,750 in BBB Foods on September 1, 2024 and sell it today you would earn a total of 1,072 from holding BBB Foods or generate 61.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.5% |
| Values | Daily Returns |
BOSTON PPTYS LTD vs. BBB Foods
Performance |
| Timeline |
| BOSTON PPTYS LTD |
| BBB Foods |
BOSTON and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOSTON and BBB Foods
The main advantage of trading using opposite BOSTON and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOSTON position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.The idea behind BOSTON PPTYS LTD and BBB Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BBB Foods vs. Ingles Markets Incorporated | BBB Foods vs. Grocery Outlet Holding | BBB Foods vs. Ocado Group plc | BBB Foods vs. Sprouts Farmers Market |
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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