Correlation Between MercadoLibre and Boxed
Can any of the company-specific risk be diversified away by investing in both MercadoLibre 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 MercadoLibre and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MercadoLibre and Boxed Inc, you can compare the effects of market volatilities on MercadoLibre 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 MercadoLibre with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of MercadoLibre and Boxed.
Diversification Opportunities for MercadoLibre and Boxed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MercadoLibre and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MercadoLibre and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and MercadoLibre 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 MercadoLibre 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 MercadoLibre i.e., MercadoLibre and Boxed go up and down completely randomly.
Pair Corralation between MercadoLibre and Boxed
If you would invest 205,609 in MercadoLibre on August 29, 2024 and sell it today you would earn a total of 5,391 from holding MercadoLibre or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MercadoLibre vs. Boxed Inc
Performance |
| Timeline |
| MercadoLibre |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MercadoLibre and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MercadoLibre and Boxed
The main advantage of trading using opposite MercadoLibre and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MercadoLibre 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.| MercadoLibre vs. PDD Holdings | MercadoLibre vs. JD Inc Adr | MercadoLibre vs. Alibaba Group Holding | MercadoLibre vs. Global E Online |
| Boxed vs. Assurant | Boxed vs. Sun Life Financial | Boxed vs. Aegon NV ADR | Boxed vs. CF Industries Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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