Correlation Between BOS Better and Flex
Can any of the company-specific risk be diversified away by investing in both BOS Better and Flex 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 Flex 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 Flex, you can compare the effects of market volatilities on BOS Better and Flex 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 Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Flex.
Diversification Opportunities for BOS Better and Flex
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BOS and Flex is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex 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 Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of BOS Better i.e., BOS Better and Flex go up and down completely randomly.
Pair Corralation between BOS Better and Flex
Given the investment horizon of 90 days BOS Better is expected to generate 8.05 times less return on investment than Flex. In addition to that, BOS Better is 1.1 times more volatile than Flex. It trades about 0.02 of its total potential returns per unit of risk. Flex is currently generating about 0.22 per unit of volatility. If you would invest 4,238 in Flex on May 31, 2025 and sell it today you would earn a total of 1,238 from holding Flex or generate 29.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Flex
Performance |
| Timeline |
| BOS Better Online |
| Flex |
BOS Better and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Flex
The main advantage of trading using opposite BOS Better and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| BOS Better vs. Lantronix | BOS Better vs. KVH Industries | BOS Better vs. Silicom | BOS Better vs. Ituran Location and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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