Correlation Between Boxed and Bravada Intl
Can any of the company-specific risk be diversified away by investing in both Boxed and Bravada Intl 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 Bravada Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and Bravada Intl, you can compare the effects of market volatilities on Boxed and Bravada Intl 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 Bravada Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and Bravada Intl.
Diversification Opportunities for Boxed and Bravada Intl
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boxed and Bravada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Bravada Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bravada Intl 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 Bravada Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bravada Intl has no effect on the direction of Boxed i.e., Boxed and Bravada Intl go up and down completely randomly.
Pair Corralation between Boxed and Bravada Intl
Assuming the 90 days horizon Boxed Inc is expected to generate 7.97 times more return on investment than Bravada Intl. However, Boxed is 7.97 times more volatile than Bravada Intl. It trades about 0.06 of its potential returns per unit of risk. Bravada Intl is currently generating about 0.0 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 | Flat |
| Strength | Insignificant |
| Accuracy | 3.82% |
| Values | Daily Returns |
Boxed Inc vs. Bravada Intl
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bravada Intl |
Boxed and Bravada Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and Bravada Intl
The main advantage of trading using opposite Boxed and Bravada Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, Bravada Intl 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 Bravada Intl will offset losses from the drop in Bravada Intl's long position.| Boxed vs. Frontier Group Holdings | Boxed vs. Volaris | Boxed vs. Ameriprise Financial | Boxed vs. PennantPark Floating Rate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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