Correlation Between BOS Better and National CineMedia
Can any of the company-specific risk be diversified away by investing in both BOS Better and National CineMedia 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 National CineMedia 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 National CineMedia, you can compare the effects of market volatilities on BOS Better and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and National CineMedia.
Diversification Opportunities for BOS Better and National CineMedia
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BOS and National is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of BOS Better i.e., BOS Better and National CineMedia go up and down completely randomly.
Pair Corralation between BOS Better and National CineMedia
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.71 times more return on investment than National CineMedia. However, BOS Better Online is 1.41 times less risky than National CineMedia. It trades about -0.07 of its potential returns per unit of risk. National CineMedia is currently generating about -0.16 per unit of risk. If you would invest 337.00 in BOS Better Online on September 25, 2024 and sell it today you would lose (7.00) from holding BOS Better Online or give up 2.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BOS Better Online vs. National CineMedia
Performance |
Timeline |
BOS Better Online |
National CineMedia |
BOS Better and National CineMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BOS Better and National CineMedia
The main advantage of trading using opposite BOS Better and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.BOS Better vs. Mynaric AG ADR | BOS Better vs. Knowles Cor | BOS Better vs. Comtech Telecommunications Corp | BOS Better vs. Ituran Location and |
National CineMedia vs. CMG Holdings Group | National CineMedia vs. Beyond Commerce | National CineMedia vs. Mastermind | National CineMedia vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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