Correlation Between PDD Holdings and Boxed
Can any of the company-specific risk be diversified away by investing in both PDD Holdings 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 PDD Holdings and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Boxed Inc, you can compare the effects of market volatilities on PDD Holdings 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 PDD Holdings with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Boxed.
Diversification Opportunities for PDD Holdings and Boxed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PDD and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and PDD Holdings 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 PDD Holdings 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 PDD Holdings i.e., PDD Holdings and Boxed go up and down completely randomly.
Pair Corralation between PDD Holdings and Boxed
If you would invest (100.00) in Boxed Inc on January 10, 2025 and sell it today you would earn a total of 100.00 from holding Boxed Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PDD Holdings vs. Boxed Inc
Performance |
| Timeline |
| PDD Holdings |
| Boxed Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PDD Holdings and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDD Holdings and Boxed
The main advantage of trading using opposite PDD Holdings and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings 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.| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
| Boxed vs. Iridium Communications | Boxed vs. Imax Corp | Boxed vs. Broadleaf Co | Boxed vs. Old Dominion Freight |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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