Correlation Between Snap and Boxed
Can any of the company-specific risk be diversified away by investing in both Snap 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 Snap and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Boxed Inc, you can compare the effects of market volatilities on Snap 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 Snap with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Boxed.
Diversification Opportunities for Snap and Boxed
Weak diversification
The 3 months correlation between Snap and Boxed is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and Snap 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 Snap 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 Snap i.e., Snap and Boxed go up and down completely randomly.
Pair Corralation between Snap and Boxed
If you would invest 1,071 in Snap Inc on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Snap Inc or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Snap Inc vs. Boxed Inc
Performance |
| Timeline |
| Snap Inc |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Snap and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Boxed
The main advantage of trading using opposite Snap and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap 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 Snap 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. Sun Country Airlines | Boxed vs. Meli Hotels International | Boxed vs. Shake Shack | Boxed vs. Park Hotels Resorts |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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