Correlation Between Boxer Retail and Bytes Technology
Can any of the company-specific risk be diversified away by investing in both Boxer Retail and Bytes Technology 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 Boxer Retail and Bytes Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxer Retail and Bytes Technology, you can compare the effects of market volatilities on Boxer Retail and Bytes Technology 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 Boxer Retail with a short position of Bytes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxer Retail and Bytes Technology.
Diversification Opportunities for Boxer Retail and Bytes Technology
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Boxer and Bytes is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Boxer Retail and Bytes Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bytes Technology and Boxer Retail 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 Boxer Retail are associated (or correlated) with Bytes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bytes Technology has no effect on the direction of Boxer Retail i.e., Boxer Retail and Bytes Technology go up and down completely randomly.
Pair Corralation between Boxer Retail and Bytes Technology
Assuming the 90 days trading horizon Boxer Retail is expected to generate 0.93 times more return on investment than Bytes Technology. However, Boxer Retail is 1.07 times less risky than Bytes Technology. It trades about 0.16 of its potential returns per unit of risk. Bytes Technology is currently generating about 0.01 per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boxer Retail vs. Bytes Technology
Performance |
| Timeline |
| Boxer Retail |
| Bytes Technology |
Boxer Retail and Bytes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxer Retail and Bytes Technology
The main advantage of trading using opposite Boxer Retail and Bytes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxer Retail position performs unexpectedly, Bytes Technology 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 Bytes Technology will offset losses from the drop in Bytes Technology's long position.| Boxer Retail vs. Deneb Investments | Boxer Retail vs. Hosken Consolidated Investments | Boxer Retail vs. Advtech | Boxer Retail vs. CA Sales Holdings |
| Bytes Technology vs. Kap Industrial Holdings | Bytes Technology vs. Deneb Investments | Bytes Technology vs. Zeder Investments | Bytes Technology vs. Frontier Transport 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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