Correlation Between Boozt AB and Logistea

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

By analyzing existing cross correlation between Boozt AB and Logistea AB Series, you can compare the effects of market volatilities on Boozt AB and Logistea 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 Boozt AB with a short position of Logistea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boozt AB and Logistea.

Diversification Opportunities for Boozt AB and Logistea

0.0

Correlation Coefficient

Boozt AB  Logistea

Pay attention - limited upside

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

Pair Corralation between Boozt AB and Logistea

If you would invest  11,400  in Boozt AB on October 5, 2024 and sell it today you would earn a total of  870.00  from holding Boozt AB or generate 7.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Boozt AB  vs.  Logistea AB Series

Boozt AB

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Boozt AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Boozt AB may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Logistea AB Series

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Logistea AB Series has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Logistea is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Boozt AB and Logistea

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

The idea behind Boozt AB and Logistea AB Series 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..