Correlation Between BOS Better and Profound Medical

Can any of the company-specific risk be diversified away by investing in both BOS Better and Profound Medical 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 Profound Medical 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 Profound Medical Corp, you can compare the effects of market volatilities on BOS Better and Profound Medical 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 Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Profound Medical.

Diversification Opportunities for BOS Better and Profound Medical

0.05

Correlation Coefficient

BOS Better  Profound Medical

Significant diversification

The 3 months correlation between BOS and Profound is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical Corp 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 Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of BOS Better i.e., BOS Better and Profound Medical go up and down completely randomly.

Pair Corralation between BOS Better and Profound Medical

Given the investment horizon of 90 days BOS Better Online is expected to under-perform the Profound Medical. But the stock apears to be less risky and, when comparing its historical volatility, BOS Better Online is 1.29 times less risky than Profound Medical. The stock trades about -0.01 of its potential returns per unit of risk. The Profound Medical Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  387.00  in Profound Medical Corp on September 10, 2025 and sell it today you would earn a total of  291.00  from holding Profound Medical Corp or generate 75.19% return on investment over 90 days.

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

BOS Better Online  vs.  Profound Medical Corp

BOS Better Online

Risk-Adjusted Performance

Weakest

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 recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Profound Medical Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Profound Medical Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Profound Medical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BOS Better and Profound Medical

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

The idea behind BOS Better Online and Profound Medical Corp 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.