Correlation Between BOS BETTER and Corporate Office

Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Corporate Office 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 Corporate Office 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 Corporate Office Properties, you can compare the effects of market volatilities on BOS BETTER and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Corporate Office.

Diversification Opportunities for BOS BETTER and Corporate Office

0.0

Correlation Coefficient

BOS BETTER  Corporate Office

Pay attention - limited upside

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

Pair Corralation between BOS BETTER and Corporate Office

If you would invest  2,194  in Corporate Office Properties on September 22, 2024 and sell it today you would earn a total of  766.00  from holding Corporate Office Properties or generate 34.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

BOS BETTER ONLINE  vs.  Corporate Office Properties

BOS BETTER ONLINE

Risk-Adjusted Performance

0 of 100

Very Weak

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

Corporate Office Pro

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Corporate Office Properties are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Corporate Office may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with BOS BETTER and Corporate Office

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

The idea behind BOS BETTER ONLINE and Corporate Office Properties 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.