Correlation Between Boxed and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Boxed and Alibaba Group 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 Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and Alibaba Group Holding, you can compare the effects of market volatilities on Boxed and Alibaba Group 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 Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and Alibaba Group.
Diversification Opportunities for Boxed and Alibaba Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Boxed and Alibaba is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding 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 Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Boxed i.e., Boxed and Alibaba Group go up and down completely randomly.
Pair Corralation between Boxed and Alibaba Group
If you would invest 0.01 in Boxed Inc on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Boxed Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Boxed Inc vs. Alibaba Group Holding
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alibaba Group Holding |
Boxed and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and Alibaba Group
The main advantage of trading using opposite Boxed and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Boxed vs. Sun Country Airlines | Boxed vs. Meli Hotels International | Boxed vs. Shake Shack | Boxed vs. Park Hotels Resorts |
| Alibaba Group vs. Meituan ADR | Alibaba Group vs. Meituan | Alibaba Group vs. Qurate Retail Series | Alibaba Group vs. ThredUp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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