Correlation Between Cricut and Boxlight Corp
Can any of the company-specific risk be diversified away by investing in both Cricut 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 Cricut and Boxlight Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cricut Inc and Boxlight Corp Class, you can compare the effects of market volatilities on Cricut 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 Cricut with a short position of Boxlight Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Boxlight Corp.
Diversification Opportunities for Cricut and Boxlight Corp
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cricut and Boxlight is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc 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 Cricut 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 Cricut Inc 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 Cricut i.e., Cricut and Boxlight Corp go up and down completely randomly.
Pair Corralation between Cricut and Boxlight Corp
Given the investment horizon of 90 days Cricut Inc is expected to under-perform the Boxlight Corp. But the stock apears to be less risky and, when comparing its historical volatility, Cricut Inc is 1.56 times less risky than Boxlight Corp. The stock trades about -0.27 of its potential returns per unit of risk. The Boxlight Corp Class is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Boxlight Corp Class on August 29, 2024 and sell it today you would lose (1.00) from holding Boxlight Corp Class or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cricut Inc vs. Boxlight Corp Class
Performance |
| Timeline |
| Cricut Inc |
| Boxlight Corp Class |
Cricut and Boxlight Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cricut and Boxlight Corp
The main advantage of trading using opposite Cricut and Boxlight Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut 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.| Cricut vs. D Wave Quantum | Cricut vs. Rigetti Computing | Cricut vs. Super Micro Computer | Cricut vs. Quantum Computing |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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