Correlation Between Box and SQ Old
Can any of the company-specific risk be diversified away by investing in both Box and SQ Old 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 Box and SQ Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Box Inc and SQ Old, you can compare the effects of market volatilities on Box and SQ Old 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 Box with a short position of SQ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Box and SQ Old.
Diversification Opportunities for Box and SQ Old
Pay attention - limited upside
The 3 months correlation between Box and SQ Old is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Box Inc and SQ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQ Old and Box 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 Box Inc are associated (or correlated) with SQ Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQ Old has no effect on the direction of Box i.e., Box and SQ Old go up and down completely randomly.
Pair Corralation between Box and SQ Old
If you would invest 3,132 in Box Inc on November 9, 2024 and sell it today you would earn a total of 316.00 from holding Box Inc or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Box Inc vs. SQ Old
Performance |
| Timeline |
| Box Inc |
| SQ Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Box and SQ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Box and SQ Old
The main advantage of trading using opposite Box and SQ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Box position performs unexpectedly, SQ Old 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 SQ Old will offset losses from the drop in SQ Old's long position.The idea behind Box Inc and SQ Old 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.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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |