Correlation Between Ashtead Technology and Boston International
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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ashtead Technology Holdings vs. Boston International Holdings
Performance |
Timeline |
Ashtead Technology |
Boston International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
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.Ashtead Technology vs. Monks Investment Trust | Ashtead Technology vs. Tavistock Investments Plc | Ashtead Technology vs. Canadian General Investments | Ashtead Technology vs. Gamma Communications PLC |
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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.
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