Correlation Between Advtech and Boxer Retail
Can any of the company-specific risk be diversified away by investing in both Advtech and Boxer Retail 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 Advtech and Boxer Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advtech and Boxer Retail, you can compare the effects of market volatilities on Advtech and Boxer Retail 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 Advtech with a short position of Boxer Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advtech and Boxer Retail.
Diversification Opportunities for Advtech and Boxer Retail
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advtech and Boxer is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Advtech and Boxer Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxer Retail and Advtech 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 Advtech are associated (or correlated) with Boxer Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxer Retail has no effect on the direction of Advtech i.e., Advtech and Boxer Retail go up and down completely randomly.
Pair Corralation between Advtech and Boxer Retail
Assuming the 90 days trading horizon Advtech is expected to generate 1.08 times less return on investment than Boxer Retail. But when comparing it to its historical volatility, Advtech is 1.07 times less risky than Boxer Retail. It trades about 0.15 of its potential returns per unit of risk. Boxer Retail is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 643,300 in Boxer Retail on October 25, 2024 and sell it today you would earn a total of 28,700 from holding Boxer Retail or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advtech vs. Boxer Retail
Performance |
| Timeline |
| Advtech |
| Boxer Retail |
Advtech and Boxer Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advtech and Boxer Retail
The main advantage of trading using opposite Advtech and Boxer Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advtech position performs unexpectedly, Boxer Retail 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 Boxer Retail will offset losses from the drop in Boxer Retail's long position.| Advtech vs. MC Mining | Advtech vs. Lesaka Technologies | Advtech vs. Allied Electronics | Advtech vs. Harmony Gold Mining |
| Boxer Retail vs. Deneb Investments | Boxer Retail vs. Hosken Consolidated Investments | Boxer Retail vs. Advtech | Boxer Retail vs. CA Sales Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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