Correlation Between Boxed and ASOS Plc
Can any of the company-specific risk be diversified away by investing in both Boxed and ASOS Plc 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 Boxed and ASOS Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and ASOS plc PK, you can compare the effects of market volatilities on Boxed and ASOS Plc 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 Boxed with a short position of ASOS Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and ASOS Plc.
Diversification Opportunities for Boxed and ASOS Plc
Pay attention - limited upside
The 3 months correlation between Boxed and ASOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and ASOS plc PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASOS plc PK and Boxed 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 Boxed Inc are associated (or correlated) with ASOS Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASOS plc PK has no effect on the direction of Boxed i.e., Boxed and ASOS Plc go up and down completely randomly.
Pair Corralation between Boxed and ASOS Plc
If you would invest 454.00 in ASOS plc PK on August 28, 2024 and sell it today you would lose (5.00) from holding ASOS plc PK or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boxed Inc vs. ASOS plc PK
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ASOS plc PK |
Boxed and ASOS Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and ASOS Plc
The main advantage of trading using opposite Boxed and ASOS Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, ASOS Plc 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 ASOS Plc will offset losses from the drop in ASOS Plc's long position.| Boxed vs. Sweetgreen | Boxed vs. Papaya Growth Opportunity | Boxed vs. The Cheesecake Factory | Boxed vs. Rave Restaurant Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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