Correlation Between Box and Yext

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

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

Diversification Opportunities for Box and Yext

0.63

Correlation Coefficient

Box  Yext

Poor diversification

The 3 months correlation between Box and Yext is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Box Inc and Yext Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yext Inc and Box 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 Box Inc are associated (or correlated) with Yext. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yext Inc has no effect on the direction of Box i.e., Box and Yext go up and down completely randomly.

Pair Corralation between Box and Yext

Considering the 90-day investment horizon Box Inc is expected to under-perform the Yext. But the stock apears to be less risky and, when comparing its historical volatility, Box Inc is 1.48 times less risky than Yext. The stock trades about -0.04 of its potential returns per unit of risk. The Yext Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  645.00  in Yext Inc on December 26, 2024 and sell it today you would earn a total of  14.00  from holding Yext Inc or generate 2.17% return on investment over 90 days.

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

Box Inc  vs.  Yext Inc

Box Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Box Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Box is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Yext Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yext Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Yext is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Box and Yext

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

The idea behind Box Inc and Yext Inc 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.