Correlation Between Naspers and Boxer Retail
Can any of the company-specific risk be diversified away by investing in both Naspers and Boxer Retail 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 Naspers and Boxer Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naspers Limited and Boxer Retail, you can compare the effects of market volatilities on Naspers and Boxer Retail 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 Naspers with a short position of Boxer Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naspers and Boxer Retail.
Diversification Opportunities for Naspers and Boxer Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naspers and Boxer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naspers Limited and Boxer Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxer Retail and Naspers 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 Naspers Limited are associated (or correlated) with Boxer Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxer Retail has no effect on the direction of Naspers i.e., Naspers and Boxer Retail go up and down completely randomly.
Pair Corralation between Naspers and Boxer Retail
If you would invest 635,000 in Boxer Retail on November 4, 2024 and sell it today you would earn a total of 5,000 from holding Boxer Retail or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Naspers Limited vs. Boxer Retail
Performance |
| Timeline |
| Naspers Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boxer Retail |
Naspers and Boxer Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naspers and Boxer Retail
The main advantage of trading using opposite Naspers and Boxer Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naspers position performs unexpectedly, Boxer Retail 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 Boxer Retail will offset losses from the drop in Boxer Retail's long position.| Naspers vs. Brimstone Investment | Naspers vs. Ascendis Health | Naspers vs. Nedbank Group | Naspers vs. Safari Investments RSA |
| Boxer Retail vs. British American Tobacco | Boxer Retail vs. Astral Foods | Boxer Retail vs. We Buy Cars | Boxer Retail vs. Harmony Gold Mining |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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