Correlation Between Jd and Boxed
Can any of the company-specific risk be diversified away by investing in both Jd 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 Jd and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jd Com Inc and Boxed Inc, you can compare the effects of market volatilities on Jd 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 Jd with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd and Boxed.
Diversification Opportunities for Jd and Boxed
Good diversification
The 3 months correlation between Jd and Boxed is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and Jd 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 Jd Com Inc 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 Jd i.e., Jd and Boxed go up and down completely randomly.
Pair Corralation between Jd and Boxed
Assuming the 90 days horizon Jd is expected to generate 115.1 times less return on investment than Boxed. But when comparing it to its historical volatility, Jd Com Inc is 18.97 times less risky than Boxed. It trades about 0.01 of its potential returns per unit of risk. Boxed Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 |
Jd Com Inc vs. Boxed Inc
Performance |
| Timeline |
| Jd Com Inc |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jd and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd and Boxed
The main advantage of trading using opposite Jd and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd 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 Jd Com Inc 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. Frontier Group Holdings | Boxed vs. Volaris | Boxed vs. Ameriprise Financial | Boxed vs. PennantPark Floating Rate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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