Correlation Between Glimpse and Box
Can any of the company-specific risk be diversified away by investing in both Glimpse and Box 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 Glimpse and Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glimpse Group and Box Inc, you can compare the effects of market volatilities on Glimpse and Box 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 Glimpse with a short position of Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glimpse and Box.
Diversification Opportunities for Glimpse and Box
Excellent diversification
The 3 months correlation between Glimpse and Box is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Box Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Inc and Glimpse 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 Glimpse Group are associated (or correlated) with Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Box Inc has no effect on the direction of Glimpse i.e., Glimpse and Box go up and down completely randomly.
Pair Corralation between Glimpse and Box
Given the investment horizon of 90 days Glimpse is expected to generate 1.99 times less return on investment than Box. In addition to that, Glimpse is 4.81 times more volatile than Box Inc. It trades about 0.01 of its total potential returns per unit of risk. Box Inc is currently generating about 0.1 per unit of volatility. If you would invest 3,261 in Box Inc on August 26, 2024 and sell it today you would earn a total of 167.00 from holding Box Inc or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glimpse Group vs. Box Inc
Performance |
| Timeline |
| Glimpse Group |
| Box Inc |
Glimpse and Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glimpse and Box
The main advantage of trading using opposite Glimpse and Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse position performs unexpectedly, Box 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 Box will offset losses from the drop in Box's long position.| Glimpse vs. GigaCloud Technology Class | Glimpse vs. Arqit Quantum | Glimpse vs. Telos Corp | Glimpse vs. Cemtrex |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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