Correlation Between Alibaba Group and Boxed
Can any of the company-specific risk be diversified away by investing in both Alibaba Group and Boxed 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 Alibaba Group and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alibaba Group Holding and Boxed Inc, you can compare the effects of market volatilities on Alibaba Group and Boxed 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 Alibaba Group with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and Boxed.
Diversification Opportunities for Alibaba Group and Boxed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alibaba and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and Alibaba Group 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 Alibaba Group Holding are associated (or correlated) with Boxed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxed Inc has no effect on the direction of Alibaba Group i.e., Alibaba Group and Boxed go up and down completely randomly.
Pair Corralation between Alibaba Group and Boxed
If you would invest 7,306 in Alibaba Group Holding on August 25, 2024 and sell it today you would earn a total of 1,007 from holding Alibaba Group Holding or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alibaba Group Holding vs. Boxed Inc
Performance |
| Timeline |
| Alibaba Group Holding |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alibaba Group and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alibaba Group and Boxed
The main advantage of trading using opposite Alibaba Group and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed's long position.| Alibaba Group vs. Sea | Alibaba Group vs. Wayfair | Alibaba Group vs. Chewy Inc | Alibaba Group vs. Vipshop Holdings Limited |
| Boxed vs. Asure Software | Boxed vs. Franklin Wireless Corp | Boxed vs. Q2 Holdings | Boxed vs. Definitive Healthcare Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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