Correlation Between Boswell J and Pinelawn Cemetery

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

Diversification Opportunities for Boswell J and Pinelawn Cemetery

-0.38

Correlation Coefficient

Boswell J  Pinelawn Cemetery

Very good diversification

The 3 months correlation between Boswell and Pinelawn is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Boswell J G and Pinelawn Cemetery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinelawn Cemetery 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 Pinelawn Cemetery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinelawn Cemetery has no effect on the direction of Boswell J i.e., Boswell J and Pinelawn Cemetery go up and down completely randomly.

Pair Corralation between Boswell J and Pinelawn Cemetery

Given the investment horizon of 90 days Boswell J G is expected to generate 2.84 times more return on investment than Pinelawn Cemetery. However, Boswell J is 2.84 times more volatile than Pinelawn Cemetery. It trades about 0.04 of its potential returns per unit of risk. Pinelawn Cemetery is currently generating about -0.09 per unit of risk. If you would invest  54,526  in Boswell J G on September 13, 2024 and sell it today you would earn a total of  1,474  from holding Boswell J G or generate 2.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Boswell J G  vs.  Pinelawn Cemetery

Boswell J G

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Boswell J G are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pinelawn Cemetery

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pinelawn Cemetery has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Pinelawn Cemetery is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Boswell J and Pinelawn Cemetery

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

The idea behind Boswell J G and Pinelawn Cemetery 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.