Correlation Between Boxed and Sea

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

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

Diversification Opportunities for Boxed and Sea

0.0

Correlation Coefficient

Boxed  Sea

Pay attention - limited upside

The 3 months correlation between Boxed and Sea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boxed Inc and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Boxed i.e., Boxed and Sea go up and down completely randomly.

Pair Corralation between Boxed and Sea

If you would invest  3,845  in Sea on February 1, 2024 and sell it today you would earn a total of  2,474  from holding Sea or generate 64.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Boxed Inc  vs.  Sea

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 fundamental indicators, Boxed is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Sea

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sea are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Sea exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boxed and Sea

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

The idea behind Boxed Inc and Sea 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.