Correlation Between Global E and Boston Omaha

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

By analyzing existing cross correlation between Global E Online and Boston Omaha Corp, you can compare the effects of market volatilities on Global E and Boston Omaha 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 Global E with a short position of Boston Omaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Boston Omaha.

Diversification Opportunities for Global E and Boston Omaha

0.58

Correlation Coefficient

Global E  Boston Omaha

Very weak diversification

The 3 months correlation between Global and Boston is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Boston Omaha Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha Corp and Global E 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 Global E Online are associated (or correlated) with Boston Omaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Omaha Corp has no effect on the direction of Global E i.e., Global E and Boston Omaha go up and down completely randomly.

Pair Corralation between Global E and Boston Omaha

Given the investment horizon of 90 days Global E Online is expected to generate 2.2 times more return on investment than Boston Omaha. However, Global E is 2.2 times more volatile than Boston Omaha Corp. It trades about -0.04 of its potential returns per unit of risk. Boston Omaha Corp is currently generating about -0.15 per unit of risk. If you would invest  3,651  in Global E Online on May 6, 2025 and sell it today you would lose (416.00) from holding Global E Online or give up 11.39% of portfolio value over 90 days.

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

Global E Online  vs.  Boston Omaha Corp

Global E Online

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Boston Omaha Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boston Omaha Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Global E and Boston Omaha

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

The idea behind Global E Online and Boston Omaha 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.