Correlation Between Gen Digital and Box
Can any of the company-specific risk be diversified away by investing in both Gen Digital and Box 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 Gen Digital and Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gen Digital and Box Inc, you can compare the effects of market volatilities on Gen Digital and Box 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 Gen Digital with a short position of Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gen Digital and Box.
Diversification Opportunities for Gen Digital and Box
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gen and Box is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gen Digital and Box Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Inc and Gen Digital 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 Gen Digital are associated (or correlated) with Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Box Inc has no effect on the direction of Gen Digital i.e., Gen Digital and Box go up and down completely randomly.
Pair Corralation between Gen Digital and Box
Considering the 90-day investment horizon Gen Digital is expected to generate 1.03 times more return on investment than Box. However, Gen Digital is 1.03 times more volatile than Box Inc. It trades about 0.05 of its potential returns per unit of risk. Box Inc is currently generating about 0.03 per unit of risk. If you would invest 2,597 in Gen Digital on November 2, 2024 and sell it today you would earn a total of 192.00 from holding Gen Digital or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gen Digital vs. Box Inc
Performance |
| Timeline |
| Gen Digital |
| Box Inc |
Gen Digital and Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gen Digital and Box
The main advantage of trading using opposite Gen Digital and Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gen Digital position performs unexpectedly, Box 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 Box will offset losses from the drop in Box's long position.| Gen Digital vs. Wex Inc | Gen Digital vs. CSG Systems International | Gen Digital vs. VeriSign | Gen Digital vs. Global Blue Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |