Correlation Between Boswell J and Corteva

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

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

Diversification Opportunities for Boswell J and Corteva

0.1

Correlation Coefficient

Boswell J  Corteva

Average diversification

The 3 months correlation between Boswell and Corteva is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Boswell J G and Corteva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corteva and Boswell J 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 Boswell J G are associated (or correlated) with Corteva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corteva has no effect on the direction of Boswell J i.e., Boswell J and Corteva go up and down completely randomly.

Pair Corralation between Boswell J and Corteva

Given the investment horizon of 90 days Boswell J G is expected to under-perform the Corteva. But the pink sheet apears to be less risky and, when comparing its historical volatility, Boswell J G is 1.31 times less risky than Corteva. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Corteva is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5,641  in Corteva on December 29, 2024 and sell it today you would earn a total of  465.00  from holding Corteva or generate 8.24% return on investment over 90 days.

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

Boswell J G  vs.  Corteva

Boswell J G

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boswell J G has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Boswell J is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Corteva

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Corteva are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Corteva may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Boswell J and Corteva

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

The idea behind Boswell J G and Corteva 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.