Correlation Between Boxed and Allegroeu
Can any of the company-specific risk be diversified away by investing in both Boxed and Allegroeu 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 Allegroeu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and Allegroeu SA, you can compare the effects of market volatilities on Boxed and Allegroeu 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 Allegroeu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and Allegroeu.
Diversification Opportunities for Boxed and Allegroeu
Very good diversification
The 3 months correlation between Boxed and Allegroeu is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Allegroeu SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegroeu SA 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 Allegroeu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegroeu SA has no effect on the direction of Boxed i.e., Boxed and Allegroeu go up and down completely randomly.
Pair Corralation between Boxed and Allegroeu
Assuming the 90 days horizon Boxed Inc is expected to generate 38.5 times more return on investment than Allegroeu. However, Boxed is 38.5 times more volatile than Allegroeu SA. It trades about 0.06 of its potential returns per unit of risk. Allegroeu SA is currently generating about 0.02 per unit of risk. If you would invest 2.20 in Boxed Inc on November 2, 2024 and sell it today you would lose (2.19) from holding Boxed Inc or give up 99.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 3.85% |
| Values | Daily Returns |
Boxed Inc vs. Allegroeu SA
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Allegroeu SA |
Boxed and Allegroeu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and Allegroeu
The main advantage of trading using opposite Boxed and Allegroeu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, Allegroeu 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 Allegroeu will offset losses from the drop in Allegroeu's long position.| Boxed vs. Frontier Group Holdings | Boxed vs. Volaris | Boxed vs. Ameriprise Financial | Boxed vs. PennantPark Floating Rate |
| Allegroeu vs. Phonex Inc | Allegroeu vs. Delivery Hero SE | Allegroeu vs. 1StdibsCom | Allegroeu vs. Natural Health Trend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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