Correlation Between PUBLICIS GROUPE and Boston Omaha

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

Diversification Opportunities for PUBLICIS GROUPE and Boston Omaha

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between PUBLICIS and Boston is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PUBLICIS GROUPE SA and Boston Omaha Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha and PUBLICIS GROUPE 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 PUBLICIS GROUPE SA 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 PUBLICIS GROUPE i.e., PUBLICIS GROUPE and Boston Omaha go up and down completely randomly.

Pair Corralation between PUBLICIS GROUPE and Boston Omaha

Assuming the 90 days horizon PUBLICIS GROUPE is expected to generate 1.35 times less return on investment than Boston Omaha. But when comparing it to its historical volatility, PUBLICIS GROUPE SA is 1.53 times less risky than Boston Omaha. It trades about 0.06 of its potential returns per unit of risk. Boston Omaha is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,534  in Boston Omaha on April 3, 2022 and sell it today you would earn a total of  1,007  from holding Boston Omaha or generate 65.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy82.13%
ValuesDaily Returns

PUBLICIS GROUPE SA  vs.  Boston Omaha Corp.

 Performance (%) 
      Timeline 
PUBLICIS GROUPE SA 
PUBLICIS Performance
0 of 100
Over the last 90 days PUBLICIS GROUPE SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0534
Payout Ratio
0.49
Last Split Factor
2:1
Forward Annual Dividend Rate
0.64
Dividend Date
2022-07-20
Ex Dividend Date
2022-07-01
Last Split Date
2012-07-24

PUBLICIS 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.

PUBLICIS GROUPE and Boston Omaha Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with PUBLICIS GROUPE and Boston Omaha

The main advantage of trading using opposite PUBLICIS GROUPE and Boston Omaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLICIS GROUPE 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.

PUBLICIS GROUPE SA

Pair trading matchups for PUBLICIS GROUPE

The idea behind PUBLICIS GROUPE SA 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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