Correlation Between Boxed and MOGU
Can any of the company-specific risk be diversified away by investing in both Boxed and MOGU 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 MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and MOGU Inc, you can compare the effects of market volatilities on Boxed and MOGU 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 MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and MOGU.
Diversification Opportunities for Boxed and MOGU
Significant diversification
The 3 months correlation between Boxed and MOGU is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc 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 MOGU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOGU Inc has no effect on the direction of Boxed i.e., Boxed and MOGU go up and down completely randomly.
Pair Corralation between Boxed and MOGU
Assuming the 90 days horizon Boxed Inc is expected to generate 15.06 times more return on investment than MOGU. However, Boxed is 15.06 times more volatile than MOGU Inc. It trades about 0.06 of its potential returns per unit of risk. MOGU Inc 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 Together |
| Strength | Insignificant |
| Accuracy | 3.9% |
| Values | Daily Returns |
Boxed Inc vs. MOGU Inc
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MOGU Inc |
Boxed and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and MOGU
The main advantage of trading using opposite Boxed and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, MOGU 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 MOGU will offset losses from the drop in MOGU's long position.| Boxed vs. Frontier Group Holdings | Boxed vs. Volaris | Boxed vs. Ameriprise Financial | Boxed vs. PennantPark Floating Rate |
| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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