Correlation Between SkyWest and Boxed
Can any of the company-specific risk be diversified away by investing in both SkyWest 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 SkyWest and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SkyWest and Boxed Inc, you can compare the effects of market volatilities on SkyWest 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 SkyWest with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of SkyWest and Boxed.
Diversification Opportunities for SkyWest and Boxed
Good diversification
The 3 months correlation between SkyWest and Boxed is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SkyWest and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and SkyWest 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 SkyWest 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 SkyWest i.e., SkyWest and Boxed go up and down completely randomly.
Pair Corralation between SkyWest and Boxed
If you would invest 10,108 in SkyWest on November 3, 2024 and sell it today you would earn a total of 1,984 from holding SkyWest or generate 19.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
SkyWest vs. Boxed Inc
Performance |
| Timeline |
| SkyWest |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SkyWest and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SkyWest and Boxed
The main advantage of trading using opposite SkyWest and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SkyWest 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.| SkyWest vs. Copa Holdings SA | SkyWest vs. Sun Country Airlines | SkyWest vs. Air Transport Services | SkyWest vs. Frontier Group Holdings |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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