Correlation Between Flex and Boxed
Can any of the company-specific risk be diversified away by investing in both Flex and Boxed 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 Flex and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flex and Boxed Inc, you can compare the effects of market volatilities on Flex and Boxed 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 Flex with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flex and Boxed.
Diversification Opportunities for Flex and Boxed
Pay attention - limited upside
The 3 months correlation between Flex and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flex and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and Flex 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 Flex are associated (or correlated) with Boxed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxed Inc has no effect on the direction of Flex i.e., Flex and Boxed go up and down completely randomly.
Pair Corralation between Flex and Boxed
If you would invest 3,520 in Flex on September 3, 2024 and sell it today you would earn a total of 377.00 from holding Flex or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Flex vs. Boxed Inc
Performance |
| Timeline |
| Flex |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flex and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flex and Boxed
The main advantage of trading using opposite Flex and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flex position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed's long position.The idea behind Flex and Boxed Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Boxed vs. Datadog | Boxed vs. Patterson UTI Energy | Boxed vs. FiscalNote Holdings | Boxed vs. Asure Software |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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