Correlation Between COMBA TELECOM and BOS BETTER

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

By analyzing existing cross correlation between COMBA TELECOM SYST and BOS BETTER ONLINE, you can compare the effects of market volatilities on COMBA TELECOM 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 COMBA TELECOM with a short position of BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and BOS BETTER.

Diversification Opportunities for COMBA TELECOM and BOS BETTER

0.0

Correlation Coefficient

COMBA TELECOM  BOS BETTER

Pay attention - limited upside

The 3 months correlation between COMBA and BOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST 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 COMBA TELECOM 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 COMBA TELECOM SYST 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 COMBA TELECOM i.e., COMBA TELECOM and BOS BETTER go up and down completely randomly.

Pair Corralation between COMBA TELECOM and BOS BETTER

If you would invest  14.00  in COMBA TELECOM SYST on September 22, 2024 and sell it today you would lose (1.00) from holding COMBA TELECOM SYST or give up 7.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

COMBA TELECOM SYST  vs.  BOS BETTER ONLINE

COMBA TELECOM SYST

Risk-Adjusted Performance

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Very Weak

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

BOS BETTER ONLINE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BOS BETTER ONLINE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BOS BETTER is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with COMBA TELECOM and BOS BETTER

The main advantage of trading using opposite COMBA TELECOM and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM 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 COMBA TELECOM SYST 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.