Correlation Between Shift4 Payments and Box
Can any of the company-specific risk be diversified away by investing in both Shift4 Payments 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 Shift4 Payments and Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shift4 Payments and Box Inc, you can compare the effects of market volatilities on Shift4 Payments 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 Shift4 Payments with a short position of Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shift4 Payments and Box.
Diversification Opportunities for Shift4 Payments and Box
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shift4 and Box is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shift4 Payments and Box Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Inc and Shift4 Payments 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 Shift4 Payments 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 Shift4 Payments i.e., Shift4 Payments and Box go up and down completely randomly.
Pair Corralation between Shift4 Payments and Box
Given the investment horizon of 90 days Shift4 Payments is expected to generate 1.56 times more return on investment than Box. However, Shift4 Payments is 1.56 times more volatile than Box Inc. It trades about 0.01 of its potential returns per unit of risk. Box Inc is currently generating about 0.0 per unit of risk. If you would invest 6,498 in Shift4 Payments on January 19, 2024 and sell it today you would lose (308.00) from holding Shift4 Payments or give up 4.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shift4 Payments vs. Box Inc
Performance |
Timeline |
Shift4 Payments |
Box Inc |
Shift4 Payments and Box Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shift4 Payments and Box
The main advantage of trading using opposite Shift4 Payments and Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shift4 Payments 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.Shift4 Payments vs. SentinelOne | Shift4 Payments vs. Confluent | Shift4 Payments vs. Hashicorp | Shift4 Payments vs. MongoDB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
CEOs Directory Screen CEOs from public companies around the world | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |