Correlation Between Barsele Minerals and Hugo Boss

Can any of the company-specific risk be diversified away by investing in both Barsele Minerals and Hugo Boss 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 Barsele Minerals and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barsele Minerals Corp and Hugo Boss AG, you can compare the effects of market volatilities on Barsele Minerals and Hugo Boss 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 Barsele Minerals with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barsele Minerals and Hugo Boss.

Diversification Opportunities for Barsele Minerals and Hugo Boss

-0.76

Correlation Coefficient

Barsele Minerals  Hugo Boss

Pay attention - limited upside

The 3 months correlation between Barsele and Hugo is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Barsele Minerals Corp and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Barsele Minerals 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 Barsele Minerals Corp are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Barsele Minerals i.e., Barsele Minerals and Hugo Boss go up and down completely randomly.

Pair Corralation between Barsele Minerals and Hugo Boss

Assuming the 90 days horizon Barsele Minerals Corp is expected to generate 6.45 times more return on investment than Hugo Boss. However, Barsele Minerals is 6.45 times more volatile than Hugo Boss AG. It trades about 0.05 of its potential returns per unit of risk. Hugo Boss AG is currently generating about 0.02 per unit of risk. If you would invest  18.00  in Barsele Minerals Corp on February 20, 2024 and sell it today you would lose (3.00) from holding Barsele Minerals Corp or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Barsele Minerals Corp  vs.  Hugo Boss AG

Barsele Minerals Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Barsele Minerals Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Barsele Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Hugo Boss AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hugo Boss AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Barsele Minerals and Hugo Boss

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

The idea behind Barsele Minerals Corp and Hugo Boss AG 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.