Correlation Between Minim and Boxlight Corp

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

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

Diversification Opportunities for Minim and Boxlight Corp

0.3

Correlation Coefficient

Minim  Boxlight Corp

Weak diversification

The 3 months correlation between Minim and Boxlight is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc 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 Minim 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 Minim Inc 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 Minim i.e., Minim and Boxlight Corp go up and down completely randomly.

Pair Corralation between Minim and Boxlight Corp

Given the investment horizon of 90 days Minim Inc is expected to under-perform the Boxlight Corp. In addition to that, Minim is 1.77 times more volatile than Boxlight Corp Class. It trades about -0.02 of its total potential returns per unit of risk. Boxlight Corp Class is currently generating about 0.2 per unit of volatility. If you would invest  56.00  in Boxlight Corp Class on March 9, 2024 and sell it today you would earn a total of  13.00  from holding Boxlight Corp Class or generate 23.21% return on investment over 90 days.

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

Minim Inc  vs.  Boxlight Corp Class

Minim Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in July 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Boxlight Corp Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boxlight Corp Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in July 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Minim and Boxlight Corp

The main advantage of trading using opposite Minim and Boxlight Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim 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.

The idea behind Minim Inc and Boxlight Corp Class 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.