Correlation Between BOS Better and Raytech Holding
Can any of the company-specific risk be diversified away by investing in both BOS Better and Raytech Holding 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 Raytech Holding 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 Raytech Holding Limited, you can compare the effects of market volatilities on BOS Better and Raytech Holding 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 Raytech Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Raytech Holding.
Diversification Opportunities for BOS Better and Raytech Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BOS and Raytech is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Raytech Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytech Holding 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 Raytech Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytech Holding has no effect on the direction of BOS Better i.e., BOS Better and Raytech Holding go up and down completely randomly.
Pair Corralation between BOS Better and Raytech Holding
Given the investment horizon of 90 days BOS Better is expected to generate 2.83 times less return on investment than Raytech Holding. But when comparing it to its historical volatility, BOS Better Online is 3.39 times less risky than Raytech Holding. It trades about 0.16 of its potential returns per unit of risk. Raytech Holding Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Raytech Holding Limited on May 2, 2025 and sell it today you would earn a total of 96.00 from holding Raytech Holding Limited or generate 59.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Raytech Holding Limited
Performance |
| Timeline |
| BOS Better Online |
| Raytech Holding |
BOS Better and Raytech Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Raytech Holding
The main advantage of trading using opposite BOS Better and Raytech Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Raytech Holding 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 Raytech Holding will offset losses from the drop in Raytech Holding's long position.| BOS Better vs. Lantronix | BOS Better vs. KVH Industries | BOS Better vs. Silicom | BOS Better vs. Ituran Location and |
| Raytech Holding vs. Rocky Brands | Raytech Holding vs. Uranium Energy Corp | Raytech Holding vs. IPG Photonics | Raytech Holding vs. Coty Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |