Correlation Between Evertz Technologies and Boxlight Corp

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

By analyzing existing cross correlation between Evertz Technologies Limited and Boxlight Corp Class, you can compare the effects of market volatilities on Evertz Technologies and Boxlight Corp 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 Evertz Technologies with a short position of Boxlight Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertz Technologies and Boxlight Corp.

Diversification Opportunities for Evertz Technologies and Boxlight Corp

0.69

Correlation Coefficient

Evertz Technologies  Boxlight Corp

Poor diversification

The 3 months correlation between Evertz and Boxlight is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and Boxlight Corp Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxlight Corp Class and Evertz Technologies 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 Evertz Technologies Limited are associated (or correlated) with Boxlight Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxlight Corp Class has no effect on the direction of Evertz Technologies i.e., Evertz Technologies and Boxlight Corp go up and down completely randomly.

Pair Corralation between Evertz Technologies and Boxlight Corp

Assuming the 90 days horizon Evertz Technologies Limited is expected to under-perform the Boxlight Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evertz Technologies Limited is 17.78 times less risky than Boxlight Corp. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Boxlight Corp Class is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  196.00  in Boxlight Corp Class on December 30, 2024 and sell it today you would lose (36.00) from holding Boxlight Corp Class or give up 18.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.38%
Values	Daily Returns

Evertz Technologies Limited  vs.  Boxlight Corp Class

Evertz Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evertz Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Boxlight Corp Class

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boxlight Corp Class are ranked lower than 5 (%) 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.

Pair Trading with Evertz Technologies and Boxlight Corp

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

The idea behind Evertz Technologies Limited and Boxlight Corp Class 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.