Correlation Between Boston Omaha and PAR Technology

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Can any of the company-specific risk be diversified away by investing in both Boston Omaha and PAR Technology 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 Boston Omaha and PAR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Omaha and PAR Technology, you can compare the effects of market volatilities on Boston Omaha and PAR Technology 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 Boston Omaha with a short position of PAR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and PAR Technology.

Diversification Opportunities for Boston Omaha and PAR Technology

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Boston and PAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha and PAR Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAR Technology and Boston Omaha 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 Boston Omaha are associated (or correlated) with PAR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAR Technology has no effect on the direction of Boston Omaha i.e., Boston Omaha and PAR Technology go up and down completely randomly.

Pair Corralation between Boston Omaha and PAR Technology

If you would invest  3,720  in PAR Technology on December 29, 2023 and sell it today you would earn a total of  788.00  from holding PAR Technology or generate 21.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Boston Omaha  vs.  PAR Technology

 Performance 
       Timeline  
Boston Omaha 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Boston Omaha has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Boston Omaha is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
PAR Technology 

Risk-Adjusted Performance

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Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in PAR Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, PAR Technology is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Boston Omaha and PAR Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Boston Omaha and PAR Technology

The main advantage of trading using opposite Boston Omaha and PAR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, PAR Technology 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 PAR Technology will offset losses from the drop in PAR Technology's long position.
The idea behind Boston Omaha and PAR Technology 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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