Correlation Between BOS Better and Coursera

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

Diversification Opportunities for BOS Better and Coursera

0.54

Correlation Coefficient

BOS Better  Coursera

Very weak diversification

The 3 months correlation between BOS and Coursera is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of BOS Better i.e., BOS Better and Coursera go up and down completely randomly.

Pair Corralation between BOS Better and Coursera

Given the investment horizon of 90 days BOS Better Online is expected to generate 0.69 times more return on investment than Coursera. However, BOS Better Online is 1.45 times less risky than Coursera. It trades about 0.05 of its potential returns per unit of risk. Coursera is currently generating about -0.01 per unit of risk. If you would invest  208.00  in BOS Better Online on October 2, 2024 and sell it today you would earn a total of  122.00  from holding BOS Better Online or generate 58.65% return on investment over 90 days.

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

BOS Better Online  vs.  Coursera

BOS Better Online

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BOS Better Online are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, BOS Better exhibited solid returns over the last few months and may actually be approaching a breakup point.

Coursera

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coursera are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Coursera reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BOS Better and Coursera

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

The idea behind BOS Better Online and Coursera 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.