Correlation Between Boxed and Cnova NV
Can any of the company-specific risk be diversified away by investing in both Boxed and Cnova NV 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 Cnova NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and Cnova NV, you can compare the effects of market volatilities on Boxed and Cnova NV 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 Cnova NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and Cnova NV.
Diversification Opportunities for Boxed and Cnova NV
Pay attention - limited upside
The 3 months correlation between Boxed and Cnova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Cnova NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnova NV 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 Cnova NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnova NV has no effect on the direction of Boxed i.e., Boxed and Cnova NV go up and down completely randomly.
Pair Corralation between Boxed and Cnova NV
If you would invest 295.00 in Cnova NV on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cnova NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boxed Inc vs. Cnova NV
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boxed and Cnova NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and Cnova NV
The main advantage of trading using opposite Boxed and Cnova NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, Cnova NV 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 Cnova NV will offset losses from the drop in Cnova NV's long position.The idea behind Boxed Inc and Cnova NV 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.| Cnova NV vs. ZALANDO SE ADR | Cnova NV vs. Meiwu Technology Co | Cnova NV vs. Alibaba Group Holding | Cnova NV vs. PDD 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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