Correlation Between Boardwalktech Software and Smith Micro

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

By analyzing existing cross correlation between Boardwalktech Software Corp and Smith Micro Software, you can compare the effects of market volatilities on Boardwalktech Software and Smith Micro 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 Boardwalktech Software with a short position of Smith Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boardwalktech Software and Smith Micro.

Diversification Opportunities for Boardwalktech Software and Smith Micro

0.69

Correlation Coefficient

Boardwalktech Software  Smith Micro

Poor diversification

The 3 months correlation between Boardwalktech and Smith is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Boardwalktech Software Corp and Smith Micro Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Micro Software and Boardwalktech Software 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 Boardwalktech Software Corp are associated (or correlated) with Smith Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Micro Software has no effect on the direction of Boardwalktech Software i.e., Boardwalktech Software and Smith Micro go up and down completely randomly.

Pair Corralation between Boardwalktech Software and Smith Micro

Assuming the 90 days horizon Boardwalktech Software Corp is expected to under-perform the Smith Micro. In addition to that, Boardwalktech Software is 1.52 times more volatile than Smith Micro Software. It trades about -0.09 of its total potential returns per unit of risk. Smith Micro Software is currently generating about -0.03 per unit of volatility. If you would invest  73.00  in Smith Micro Software on September 10, 2025 and sell it today you would lose (10.00) from holding Smith Micro Software or give up 13.7% of portfolio value over 90 days.

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

Boardwalktech Software Corp  vs.  Smith Micro Software

Boardwalktech Software

Risk-Adjusted Performance

Weakest

Over the last 90 days Boardwalktech Software Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Smith Micro Software

Risk-Adjusted Performance

Weakest

Over the last 90 days Smith Micro Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Boardwalktech Software and Smith Micro

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

The idea behind Boardwalktech Software Corp and Smith Micro Software 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.