Correlation Between Atlas Salt and Boston Omaha

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

Diversification Opportunities for Atlas Salt and Boston Omaha

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Atlas and Boston is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Salt and Boston Omaha Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha and Atlas Salt 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 Atlas Salt 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 Atlas Salt i.e., Atlas Salt and Boston Omaha go up and down completely randomly.

Pair Corralation between Atlas Salt and Boston Omaha

Assuming the 90 days horizon Atlas Salt is expected to generate 3.1 times more return on investment than Boston Omaha. However, Atlas Salt is 3.1 times more volatile than Boston Omaha. It trades about 0.09 of its potential returns per unit of risk. Boston Omaha is currently generating about 0.05 per unit of risk. If you would invest  79.00  in Atlas Salt on May 9, 2022 and sell it today you would earn a total of  216.00  from holding Atlas Salt or generate 273.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy75.26%
ValuesDaily Returns

Atlas Salt  vs.  Boston Omaha Corp.

 Performance (%) 
       Timeline  
Atlas Salt 
Atlas Performance
14 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Salt are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Atlas Salt exhibited solid returns over the last few months and may actually be approaching a breakup point.

Atlas 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 current stock price mess, may contribute to short-term losses for the institutional investors.

Atlas Salt and Boston Omaha Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atlas Salt and Boston Omaha

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

Atlas Salt

Pair trading matchups for Atlas Salt

The idea behind Atlas Salt 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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