Correlation Between Boxlight Corp and BeWhere Holdings

Can any of the company-specific risk be diversified away by investing in both Boxlight Corp and BeWhere Holdings 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 Boxlight Corp and BeWhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boxlight Corp Class and BeWhere Holdings, you can compare the effects of market volatilities on Boxlight Corp and BeWhere Holdings 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 Boxlight Corp with a short position of BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxlight Corp and BeWhere Holdings.

Diversification Opportunities for Boxlight Corp and BeWhere Holdings

0.16

Correlation Coefficient

Boxlight Corp  BeWhere Holdings

Average diversification

The 3 months correlation between Boxlight and BeWhere is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Boxlight Corp Class and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and Boxlight Corp 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 Boxlight Corp Class are associated (or correlated) with BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of Boxlight Corp i.e., Boxlight Corp and BeWhere Holdings go up and down completely randomly.

Pair Corralation between Boxlight Corp and BeWhere Holdings

Given the investment horizon of 90 days Boxlight Corp is expected to generate 1.12 times less return on investment than BeWhere Holdings. But when comparing it to its historical volatility, Boxlight Corp Class is 1.08 times less risky than BeWhere Holdings. It trades about 0.02 of its potential returns per unit of risk. BeWhere Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  51.00  in BeWhere Holdings on September 4, 2024 and sell it today you would earn a total of  0.00  from holding BeWhere Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Boxlight Corp Class  vs.  BeWhere Holdings

Boxlight Corp Class

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Boxlight Corp Class are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Boxlight Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

BeWhere Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BeWhere Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting technical and fundamental indicators, BeWhere Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Boxlight Corp and BeWhere Holdings

The main advantage of trading using opposite Boxlight Corp and BeWhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxlight Corp position performs unexpectedly, BeWhere Holdings 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 BeWhere Holdings will offset losses from the drop in BeWhere Holdings' long position.

The idea behind Boxlight Corp Class and BeWhere Holdings 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.