Correlation Between China Health and Boxlight Corp
Can any of the company-specific risk be diversified away by investing in both China Health and Boxlight Corp 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 China Health and Boxlight Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Health Management and Boxlight Corp Class, you can compare the effects of market volatilities on China Health and Boxlight Corp 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 China Health with a short position of Boxlight Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Health and Boxlight Corp.
Diversification Opportunities for China Health and Boxlight Corp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Boxlight is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Health Management and Boxlight Corp Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxlight Corp Class and China Health 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 China Health Management are associated (or correlated) with Boxlight Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxlight Corp Class has no effect on the direction of China Health i.e., China Health and Boxlight Corp go up and down completely randomly.
Pair Corralation between China Health and Boxlight Corp
Given the investment horizon of 90 days China Health Management is expected to generate 2.97 times more return on investment than Boxlight Corp. However, China Health is 2.97 times more volatile than Boxlight Corp Class. It trades about 0.06 of its potential returns per unit of risk. Boxlight Corp Class is currently generating about -0.05 per unit of risk. If you would invest 1.20 in China Health Management on August 27, 2024 and sell it today you would lose (0.59) from holding China Health Management or give up 49.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Health Management vs. Boxlight Corp Class
Performance |
| Timeline |
| China Health Management |
| Boxlight Corp Class |
China Health and Boxlight Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Health and Boxlight Corp
The main advantage of trading using opposite China Health and Boxlight Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Health position performs unexpectedly, Boxlight Corp 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 Boxlight Corp will offset losses from the drop in Boxlight Corp's long position.| China Health vs. Boxlight Corp Class | China Health vs. Siyata Mobile | China Health vs. ClearOne | China Health vs. HUMANA INC |
| Boxlight Corp vs. Siyata Mobile | Boxlight Corp vs. ClearOne | Boxlight Corp vs. Ceragon Networks | Boxlight Corp vs. Akoustis Technologies |
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.
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