Correlation Between Boxed and Paysafe

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

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

Diversification Opportunities for Boxed and Paysafe

0.12

Correlation Coefficient

Boxed  Paysafe

Average diversification

The 3 months correlation between Boxed and Paysafe is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe and Boxed 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 Boxed Inc are associated (or correlated) with Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of Boxed i.e., Boxed and Paysafe go up and down completely randomly.

Pair Corralation between Boxed and Paysafe

If you would invest  0.01  in Boxed Inc on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Boxed Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Boxed Inc  vs.  Paysafe

Boxed Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boxed Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Boxed is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Paysafe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paysafe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Paysafe is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Boxed and Paysafe

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

The idea behind Boxed Inc and Paysafe 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.