Correlation Between Boxlight Corp and Icon Media
Can any of the company-specific risk be diversified away by investing in both Boxlight Corp and Icon Media 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 Icon Media 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 Icon Media Holdings, you can compare the effects of market volatilities on Boxlight Corp and Icon Media 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 Icon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxlight Corp and Icon Media.
Diversification Opportunities for Boxlight Corp and Icon Media
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boxlight and Icon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Boxlight Corp Class and Icon Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Media Holdings 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 Icon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Media Holdings has no effect on the direction of Boxlight Corp i.e., Boxlight Corp and Icon Media go up and down completely randomly.
Pair Corralation between Boxlight Corp and Icon Media
Given the investment horizon of 90 days Boxlight Corp Class is expected to under-perform the Icon Media. But the stock apears to be less risky and, when comparing its historical volatility, Boxlight Corp Class is 3.04 times less risky than Icon Media. The stock trades about -0.01 of its potential returns per unit of risk. The Icon Media Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Icon Media Holdings on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Icon Media Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boxlight Corp Class vs. Icon Media Holdings
Performance |
| Timeline |
| Boxlight Corp Class |
| Icon Media Holdings |
Boxlight Corp and Icon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxlight Corp and Icon Media
The main advantage of trading using opposite Boxlight Corp and Icon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxlight Corp position performs unexpectedly, Icon Media 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 Icon Media will offset losses from the drop in Icon Media's long position.| Boxlight Corp vs. D Wave Quantum | Boxlight Corp vs. Rigetti Computing | Boxlight Corp vs. Cricut Inc | Boxlight Corp vs. Quantum Computing |
| Icon Media vs. Boxlight Corp Class | Icon Media vs. Siyata Mobile | Icon Media vs. ClearOne | Icon Media vs. HUMANA 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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