Correlation Between BOS BETTER and SHIN-ETSU CHEMICAL
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and SHIN-ETSU CHEMICAL 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 BOS BETTER and SHIN-ETSU CHEMICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and SHIN ETSU CHEMICAL, you can compare the effects of market volatilities on BOS BETTER and SHIN-ETSU CHEMICAL 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 BOS BETTER with a short position of SHIN-ETSU CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and SHIN-ETSU CHEMICAL.
Diversification Opportunities for BOS BETTER and SHIN-ETSU CHEMICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and SHIN-ETSU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and SHIN ETSU CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIN ETSU CHEMICAL and BOS BETTER 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 BOS BETTER ONLINE are associated (or correlated) with SHIN-ETSU CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIN ETSU CHEMICAL has no effect on the direction of BOS BETTER i.e., BOS BETTER and SHIN-ETSU CHEMICAL go up and down completely randomly.
Pair Corralation between BOS BETTER and SHIN-ETSU CHEMICAL
If you would invest 3,140 in SHIN ETSU CHEMICAL on October 21, 2024 and sell it today you would earn a total of 98.00 from holding SHIN ETSU CHEMICAL or generate 3.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.66% |
Values | Daily Returns |
BOS BETTER ONLINE vs. SHIN ETSU CHEMICAL
Performance |
Timeline |
BOS BETTER ONLINE |
SHIN ETSU CHEMICAL |
BOS BETTER and SHIN-ETSU CHEMICAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BOS BETTER and SHIN-ETSU CHEMICAL
The main advantage of trading using opposite BOS BETTER and SHIN-ETSU CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, SHIN-ETSU CHEMICAL 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 SHIN-ETSU CHEMICAL will offset losses from the drop in SHIN-ETSU CHEMICAL's long position.BOS BETTER vs. MOVIE GAMES SA | BOS BETTER vs. X FAB Silicon Foundries | BOS BETTER vs. Direct Line Insurance | BOS BETTER vs. GEAR4MUSIC LS 10 |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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