Correlation Between Boab Metals and West High

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

By analyzing existing cross correlation between Boab Metals Limited and West High Yield, you can compare the effects of market volatilities on Boab Metals and West High 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 Boab Metals with a short position of West High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boab Metals and West High.

Diversification Opportunities for Boab Metals and West High

-0.68

Correlation Coefficient

Boab Metals  West High

Excellent diversification

The 3 months correlation between Boab and West is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Boab Metals Limited and West High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West High Yield and Boab Metals 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 Boab Metals Limited are associated (or correlated) with West High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West High Yield has no effect on the direction of Boab Metals i.e., Boab Metals and West High go up and down completely randomly.

Pair Corralation between Boab Metals and West High

Assuming the 90 days horizon Boab Metals Limited is expected to generate 1.16 times more return on investment than West High. However, Boab Metals is 1.16 times more volatile than West High Yield. It trades about 0.04 of its potential returns per unit of risk. West High Yield is currently generating about 0.04 per unit of risk. If you would invest  19.00  in Boab Metals Limited on October 7, 2025 and sell it today you would earn a total of  9.00  from holding Boab Metals Limited or generate 47.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Boab Metals Limited  vs.  West High Yield

Boab Metals Limited

Risk-Adjusted Performance

Good

Over the last 90 days Boab Metals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile essential indicators, Boab Metals reported solid returns over the last few months and may actually be approaching a breakup point.

West High Yield

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in West High Yield are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, West High may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Boab Metals and West High

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

The idea behind Boab Metals Limited and West High Yield 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.