Correlation Between AirBoss Of and Boralex

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

By analyzing existing cross correlation between AirBoss of America and Boralex, you can compare the effects of market volatilities on AirBoss Of and Boralex 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 AirBoss Of with a short position of Boralex. Check out your portfolio center. Please also check ongoing floating volatility patterns of AirBoss Of and Boralex.

Diversification Opportunities for AirBoss Of and Boralex

0.73

Correlation Coefficient

AirBoss Of  Boralex

Poor diversification

The 3 months correlation between AirBoss and Boralex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding AirBoss of America and Boralex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boralex and AirBoss Of 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 AirBoss of America are associated (or correlated) with Boralex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boralex has no effect on the direction of AirBoss Of i.e., AirBoss Of and Boralex go up and down completely randomly.

Pair Corralation between AirBoss Of and Boralex

Assuming the 90 days trading horizon AirBoss of America is expected to generate 2.14 times more return on investment than Boralex. However, AirBoss Of is 2.14 times more volatile than Boralex. It trades about 0.15 of its potential returns per unit of risk. Boralex is currently generating about 0.07 per unit of risk. If you would invest  391.00  in AirBoss of America on April 22, 2025 and sell it today you would earn a total of  110.00  from holding AirBoss of America or generate 28.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

AirBoss of America  vs.  Boralex

AirBoss of America

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AirBoss of America are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, AirBoss Of displayed solid returns over the last few months and may actually be approaching a breakup point.

Boralex

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boralex are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Boralex may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AirBoss Of and Boralex

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

The idea behind AirBoss of America and Boralex 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.