Correlation Between Boston Omaha and Haoxi Health

Can any of the company-specific risk be diversified away by investing in both Boston Omaha and Haoxi Health 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 Boston Omaha and Haoxi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boston Omaha Corp and Haoxi Health Technology, you can compare the effects of market volatilities on Boston Omaha and Haoxi Health 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 Omaha with a short position of Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and Haoxi Health.

Diversification Opportunities for Boston Omaha and Haoxi Health

-0.15

Correlation Coefficient

Boston Omaha  Haoxi Health

Good diversification

The 3 months correlation between Boston and Haoxi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology and Boston Omaha 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 Omaha Corp are associated (or correlated) with Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Boston Omaha i.e., Boston Omaha and Haoxi Health go up and down completely randomly.

Pair Corralation between Boston Omaha and Haoxi Health

Considering the 90-day investment horizon Boston Omaha Corp is expected to generate 0.16 times more return on investment than Haoxi Health. However, Boston Omaha Corp is 6.21 times less risky than Haoxi Health. It trades about 0.01 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.06 per unit of risk. If you would invest  1,420  in Boston Omaha Corp on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Boston Omaha Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Boston Omaha Corp  vs.  Haoxi Health Technology

Boston Omaha Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boston Omaha Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Boston Omaha is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Haoxi Health Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haoxi Health Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Boston Omaha and Haoxi Health

The main advantage of trading using opposite Boston Omaha and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.

The idea behind Boston Omaha Corp and Haoxi Health Technology 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.