Correlation Between Boot Barn and Konica Minolta

Can any of the company-specific risk be diversified away by investing in both Boot Barn and Konica Minolta 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 Boot Barn and Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boot Barn Holdings and Konica Minolta, you can compare the effects of market volatilities on Boot Barn and Konica Minolta 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 Boot Barn with a short position of Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boot Barn and Konica Minolta.

Diversification Opportunities for Boot Barn and Konica Minolta

0.25

Correlation Coefficient

Boot Barn  Konica Minolta

Modest diversification

The 3 months correlation between Boot and Konica is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Boot Barn Holdings and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta and Boot Barn 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 Boot Barn Holdings are associated (or correlated) with Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of Boot Barn i.e., Boot Barn and Konica Minolta go up and down completely randomly.

Pair Corralation between Boot Barn and Konica Minolta

Given the investment horizon of 90 days Boot Barn Holdings is expected to under-perform the Konica Minolta. In addition to that, Boot Barn is 1.69 times more volatile than Konica Minolta. It trades about -0.17 of its total potential returns per unit of risk. Konica Minolta is currently generating about -0.14 per unit of volatility. If you would invest  442.00  in Konica Minolta on December 20, 2024 and sell it today you would lose (67.00) from holding Konica Minolta or give up 15.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Boot Barn Holdings  vs.  Konica Minolta

Boot Barn Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boot Barn Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Konica Minolta

Risk-Adjusted Performance

Very Weak

Over the last 90 days Konica Minolta has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Boot Barn and Konica Minolta

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

The idea behind Boot Barn Holdings and Konica Minolta 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.