Correlation Between Boxlight Corp and Baylin Technologies
Can any of the company-specific risk be diversified away by investing in both Boxlight Corp and Baylin Technologies 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 Boxlight Corp and Baylin Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxlight Corp Class and Baylin Technologies, you can compare the effects of market volatilities on Boxlight Corp and Baylin Technologies 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 Boxlight Corp with a short position of Baylin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxlight Corp and Baylin Technologies.
Diversification Opportunities for Boxlight Corp and Baylin Technologies
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boxlight and Baylin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Boxlight Corp Class and Baylin Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baylin Technologies and Boxlight Corp 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 Boxlight Corp Class are associated (or correlated) with Baylin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baylin Technologies has no effect on the direction of Boxlight Corp i.e., Boxlight Corp and Baylin Technologies go up and down completely randomly.
Pair Corralation between Boxlight Corp and Baylin Technologies
Given the investment horizon of 90 days Boxlight Corp Class is expected to under-perform the Baylin Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Boxlight Corp Class is 1.52 times less risky than Baylin Technologies. The stock trades about -0.08 of its potential returns per unit of risk. The Baylin Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Baylin Technologies on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Baylin Technologies or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boxlight Corp Class vs. Baylin Technologies
Performance |
| Timeline |
| Boxlight Corp Class |
| Baylin Technologies |
Boxlight Corp and Baylin Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxlight Corp and Baylin Technologies
The main advantage of trading using opposite Boxlight Corp and Baylin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxlight Corp position performs unexpectedly, Baylin Technologies 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 Baylin Technologies will offset losses from the drop in Baylin Technologies' long position.| Boxlight Corp vs. Siyata Mobile | Boxlight Corp vs. ClearOne | Boxlight Corp vs. Ceragon Networks | Boxlight Corp vs. Akoustis Technologies |
| Baylin Technologies vs. HeartCore Enterprises | Baylin Technologies vs. Trust Stamp | Baylin Technologies vs. Quhuo | Baylin Technologies vs. C3 Ai Inc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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