Correlation Between Solitron Devices and Boxlight Corp
Can any of the company-specific risk be diversified away by investing in both Solitron Devices and Boxlight Corp 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 Solitron Devices and Boxlight Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solitron Devices and Boxlight Corp Class, you can compare the effects of market volatilities on Solitron Devices and Boxlight Corp 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 Solitron Devices with a short position of Boxlight Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solitron Devices and Boxlight Corp.
Diversification Opportunities for Solitron Devices and Boxlight Corp
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Solitron and Boxlight is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Solitron Devices and Boxlight Corp Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxlight Corp Class and Solitron Devices 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 Solitron Devices are associated (or correlated) with Boxlight Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxlight Corp Class has no effect on the direction of Solitron Devices i.e., Solitron Devices and Boxlight Corp go up and down completely randomly.
Pair Corralation between Solitron Devices and Boxlight Corp
Given the investment horizon of 90 days Solitron Devices is expected to under-perform the Boxlight Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Solitron Devices is 8.1 times less risky than Boxlight Corp. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Boxlight Corp Class is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 242.00 in Boxlight Corp Class on January 18, 2025 and sell it today you would lose (99.00) from holding Boxlight Corp Class or give up 40.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Solitron Devices vs. Boxlight Corp Class
Performance |
| Timeline |
| Solitron Devices |
| Boxlight Corp Class |
Solitron Devices and Boxlight Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solitron Devices and Boxlight Corp
The main advantage of trading using opposite Solitron Devices and Boxlight Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solitron Devices position performs unexpectedly, Boxlight Corp 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 Boxlight Corp will offset losses from the drop in Boxlight Corp's long position.| Solitron Devices vs. Nova | Solitron Devices vs. inTest | Solitron Devices vs. Onto Innovation | Solitron Devices vs. Kulicke and Soffa |
| Boxlight Corp vs. Siyata Mobile | Boxlight Corp vs. ClearOne | Boxlight Corp vs. Ceragon Networks | Boxlight Corp vs. NETGEAR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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