Correlation Between Boxlight Corp and Xcelmobility

Can any of the company-specific risk be diversified away by investing in both Boxlight Corp and Xcelmobility 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 Xcelmobility 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 Xcelmobility, you can compare the effects of market volatilities on Boxlight Corp and Xcelmobility 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 Xcelmobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxlight Corp and Xcelmobility.

Diversification Opportunities for Boxlight Corp and Xcelmobility

0.0

Correlation Coefficient

Boxlight Corp  Xcelmobility

Pay attention - limited upside

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

Pair Corralation between Boxlight Corp and Xcelmobility

If you would invest  42.00  in Boxlight Corp Class on October 6, 2024 and sell it today you would earn a total of  4.00  from holding Boxlight Corp Class or generate 9.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Boxlight Corp Class  vs.  Xcelmobility

Boxlight Corp Class

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Boxlight Corp Class are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Boxlight Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Xcelmobility

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xcelmobility has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Xcelmobility is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Boxlight Corp and Xcelmobility

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

The idea behind Boxlight Corp Class and Xcelmobility 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.