Correlation Between Integral and BOS Better

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

By analyzing existing cross correlation between Integral Ad Science and BOS Better Online, you can compare the effects of market volatilities on Integral and BOS Better 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 Integral with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and BOS Better.

Diversification Opportunities for Integral and BOS Better

-0.61

Correlation Coefficient

Integral  BOS Better

Excellent diversification

The 3 months correlation between Integral and BOS is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online and Integral 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 Integral Ad Science are associated (or correlated) with BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Integral i.e., Integral and BOS Better go up and down completely randomly.

Pair Corralation between Integral and BOS Better

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the BOS Better. But the stock apears to be less risky and, when comparing its historical volatility, Integral Ad Science is 1.76 times less risky than BOS Better. The stock trades about -0.05 of its potential returns per unit of risk. The BOS Better Online is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  334.00  in BOS Better Online on October 22, 2024 and sell it today you would earn a total of  45.00  from holding BOS Better Online or generate 13.47% return on investment over 90 days.

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

Integral Ad Science  vs.  BOS Better Online

Integral Ad Science

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 weak basic indicators, BOS Better exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral and BOS Better

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

The idea behind Integral Ad Science and BOS Better Online 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.