Correlation Between Boxer Retail and Zeder Investments
Can any of the company-specific risk be diversified away by investing in both Boxer Retail and Zeder Investments 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 Zeder Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxer Retail and Zeder Investments, you can compare the effects of market volatilities on Boxer Retail and Zeder Investments 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 Zeder Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxer Retail and Zeder Investments.
Diversification Opportunities for Boxer Retail and Zeder Investments
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Boxer and Zeder is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Boxer Retail and Zeder Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeder Investments 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 Zeder Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeder Investments has no effect on the direction of Boxer Retail i.e., Boxer Retail and Zeder Investments go up and down completely randomly.
Pair Corralation between Boxer Retail and Zeder Investments
Assuming the 90 days trading horizon Boxer Retail is expected to generate 1.64 times more return on investment than Zeder Investments. However, Boxer Retail is 1.64 times more volatile than Zeder Investments. It trades about 0.18 of its potential returns per unit of risk. Zeder Investments is currently generating about -0.16 per unit of risk. If you would invest 540,000 in Boxer Retail on October 26, 2024 and sell it today you would earn a total of 121,300 from holding Boxer Retail or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Boxer Retail vs. Zeder Investments
Performance |
| Timeline |
| Boxer Retail |
| Zeder Investments |
Boxer Retail and Zeder Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxer Retail and Zeder Investments
The main advantage of trading using opposite Boxer Retail and Zeder Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxer Retail position performs unexpectedly, Zeder Investments 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 Zeder Investments will offset losses from the drop in Zeder Investments' long position.| Boxer Retail vs. Copper 360 | Boxer Retail vs. Mantengu Mining | Boxer Retail vs. MC Mining | Boxer Retail vs. City Lodge Hotels |
| Zeder Investments vs. Mantengu Mining | Zeder Investments vs. Boxer Retail | Zeder Investments vs. Advtech | Zeder Investments vs. Brimstone Investment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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