Correlation Between Boxed and Oriental Culture
Can any of the company-specific risk be diversified away by investing in both Boxed and Oriental Culture 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 Oriental Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxed Inc and Oriental Culture Holding, you can compare the effects of market volatilities on Boxed and Oriental Culture 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 Oriental Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxed and Oriental Culture.
Diversification Opportunities for Boxed and Oriental Culture
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boxed and Oriental is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Oriental Culture Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Culture 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 Oriental Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Culture Holding has no effect on the direction of Boxed i.e., Boxed and Oriental Culture go up and down completely randomly.
Pair Corralation between Boxed and Oriental Culture
Assuming the 90 days horizon Boxed Inc is expected to generate 12.48 times more return on investment than Oriental Culture. However, Boxed is 12.48 times more volatile than Oriental Culture Holding. It trades about 0.06 of its potential returns per unit of risk. Oriental Culture Holding is currently generating about -0.01 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. Oriental Culture Holding
Performance |
| Timeline |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oriental Culture Holding |
Boxed and Oriental Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxed and Oriental Culture
The main advantage of trading using opposite Boxed and Oriental Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxed position performs unexpectedly, Oriental Culture 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 Oriental Culture will offset losses from the drop in Oriental Culture's long position.| Boxed vs. Frontier Group Holdings | Boxed vs. Volaris | Boxed vs. Ameriprise Financial | Boxed vs. PennantPark Floating Rate |
| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |