Correlation Between Boxlight Corp and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both Boxlight Corp and AAC Technologies 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 Boxlight Corp and AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxlight Corp Class and AAC Technologies Holdings, you can compare the effects of market volatilities on Boxlight Corp and AAC Technologies 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 Boxlight Corp with a short position of AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxlight Corp and AAC Technologies.
Diversification Opportunities for Boxlight Corp and AAC Technologies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boxlight and AAC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Boxlight Corp Class and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings and Boxlight Corp 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 Boxlight Corp Class are associated (or correlated) with AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of Boxlight Corp i.e., Boxlight Corp and AAC Technologies go up and down completely randomly.
Pair Corralation between Boxlight Corp and AAC Technologies
Given the investment horizon of 90 days Boxlight Corp Class is expected to generate 10.73 times more return on investment than AAC Technologies. However, Boxlight Corp is 10.73 times more volatile than AAC Technologies Holdings. It trades about 0.07 of its potential returns per unit of risk. AAC Technologies Holdings is currently generating about 0.15 per unit of risk. If you would invest 196.00 in Boxlight Corp Class on December 28, 2024 and sell it today you would lose (23.00) from holding Boxlight Corp Class or give up 11.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Boxlight Corp Class vs. AAC Technologies Holdings
Performance |
Timeline |
Boxlight Corp Class |
AAC Technologies Holdings |
Boxlight Corp and AAC Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boxlight Corp and AAC Technologies
The main advantage of trading using opposite Boxlight Corp and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxlight Corp position performs unexpectedly, AAC Technologies 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.Boxlight Corp vs. Siyata Mobile | Boxlight Corp vs. ClearOne | Boxlight Corp vs. Ceragon Networks | Boxlight Corp vs. NETGEAR |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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