Correlation Between BOS Better and 98313RAD8

Can any of the company-specific risk be diversified away by investing in both BOS Better and 98313RAD8 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 98313RAD8 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 Wynn Macau 55, you can compare the effects of market volatilities on BOS Better and 98313RAD8 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 98313RAD8. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and 98313RAD8.

Diversification Opportunities for BOS Better and 98313RAD8

0.62

Correlation Coefficient

BOS Better  98313RAD8

Poor diversification

The 3 months correlation between BOS and 98313RAD8 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Wynn Macau 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Macau 55 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 98313RAD8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Macau 55 has no effect on the direction of BOS Better i.e., BOS Better and 98313RAD8 go up and down completely randomly.

Pair Corralation between BOS Better and 98313RAD8

Given the investment horizon of 90 days BOS Better Online is expected to generate 2.8 times more return on investment than 98313RAD8. However, BOS Better is 2.8 times more volatile than Wynn Macau 55. It trades about 0.08 of its potential returns per unit of risk. Wynn Macau 55 is currently generating about -0.18 per unit of risk. If you would invest  334.00  in BOS Better Online on December 23, 2024 and sell it today you would earn a total of  48.00  from holding BOS Better Online or generate 14.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	68.85%
Values	Daily Returns

BOS Better Online  vs.  Wynn Macau 55

BOS Better Online

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BOS Better Online are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, BOS Better exhibited solid returns over the last few months and may actually be approaching a breakup point.

Wynn Macau 55

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wynn Macau 55 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for Wynn Macau 55 investors.

Pair Trading with BOS Better and 98313RAD8

The main advantage of trading using opposite BOS Better and 98313RAD8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, 98313RAD8 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 98313RAD8 will offset losses from the drop in 98313RAD8's long position.

The idea behind BOS Better Online and Wynn Macau 55 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 Stocks Directory module to find actively traded stocks across global markets.