Correlation Between Ashtead Technology and Boston International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ashtead Technology and Boston International 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 Ashtead Technology and Boston International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Technology Holdings and Boston International Holdings, you can compare the effects of market volatilities on Ashtead Technology and Boston International 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 Ashtead Technology with a short position of Boston International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Technology and Boston International.

Diversification Opportunities for Ashtead Technology and Boston International

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Ashtead and Boston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Technology Holdings and Boston International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston International and Ashtead Technology 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 Ashtead Technology Holdings are associated (or correlated) with Boston International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston International has no effect on the direction of Ashtead Technology i.e., Ashtead Technology and Boston International go up and down completely randomly.

Pair Corralation between Ashtead Technology and Boston International

If you would invest  54,000  in Ashtead Technology Holdings on October 6, 2024 and sell it today you would earn a total of  4,000  from holding Ashtead Technology Holdings or generate 7.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Ashtead Technology Holdings  vs.  Boston International Holdings

 Performance 
       Timeline  
Ashtead Technology 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Ashtead Technology Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Ashtead Technology is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Boston International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Boston International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Boston International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Ashtead Technology and Boston International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ashtead Technology and Boston International

The main advantage of trading using opposite Ashtead Technology and Boston International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Technology position performs unexpectedly, Boston International 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 International will offset losses from the drop in Boston International's long position.
The idea behind Ashtead Technology Holdings and Boston International Holdings 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios