Correlation Between Interpublic and Boston Omaha

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Interpublic and Boston Omaha 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 Interpublic and Boston Omaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpublic Group and Boston Omaha, you can compare the effects of market volatilities on Interpublic and Boston Omaha 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 Interpublic with a short position of Boston Omaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic and Boston Omaha.

Diversification Opportunities for Interpublic and Boston Omaha

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Interpublic and Boston is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Interpublic Group Of and Boston Omaha Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha and Interpublic 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 Interpublic Group are associated (or correlated) with Boston Omaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Omaha has no effect on the direction of Interpublic i.e., Interpublic and Boston Omaha go up and down completely randomly.

Pair Corralation between Interpublic and Boston Omaha

If you would invest  2,541  in Boston Omaha on March 28, 2022 and sell it today you would earn a total of  0.00  from holding Boston Omaha or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy2.38%
ValuesDaily Returns

Interpublic Group Of  vs.  Boston Omaha Corp.

 Performance (%) 
      Timeline 
Interpublic Group 
Interpublic Performance
0 of 100
Over the last 90 days Interpublic Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0415
Payout Ratio
0.43
Last Split Factor
2:1
Forward Annual Dividend Rate
1.16
Dividend Date
2022-06-21
Ex Dividend Date
2022-06-03
Last Split Date
1999-07-16

Interpublic Price Channel

Boston Omaha 
Boston Performance
0 of 100
Over the last 90 days Boston Omaha has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Boston Omaha is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Interpublic and Boston Omaha Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Interpublic and Boston Omaha

The main advantage of trading using opposite Interpublic and Boston Omaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic position performs unexpectedly, Boston Omaha 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 Boston Omaha will offset losses from the drop in Boston Omaha's long position.
The idea behind Interpublic Group and Boston Omaha 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.

Boston Omaha

Pair trading matchups for Boston Omaha

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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go