Correlation Between BOS BETTER and Cal Maine

Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Cal Maine 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 BOS BETTER and Cal Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BOS BETTER ONLINE and Cal Maine Foods, you can compare the effects of market volatilities on BOS BETTER and Cal Maine 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 BOS BETTER with a short position of Cal Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Cal Maine.

Diversification Opportunities for BOS BETTER and Cal Maine

0.0

Correlation Coefficient

BOS BETTER  Cal Maine

Pay attention - limited upside

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

Pair Corralation between BOS BETTER and Cal Maine

If you would invest  8,023  in Cal Maine Foods on April 25, 2025 and sell it today you would earn a total of  1,253  from holding Cal Maine Foods or generate 15.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BOS BETTER ONLINE  vs.  Cal Maine Foods

BOS BETTER ONLINE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BOS BETTER ONLINE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BOS BETTER is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cal Maine Foods

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cal Maine Foods are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Cal Maine unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BOS BETTER and Cal Maine

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

The idea behind BOS BETTER ONLINE and Cal Maine Foods 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.