Correlation Between Black Knight and Box
Can any of the company-specific risk be diversified away by investing in both Black Knight 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 Black Knight and Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Knight and Box Inc, you can compare the effects of market volatilities on Black Knight 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 Black Knight with a short position of Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Knight and Box.
Diversification Opportunities for Black Knight and Box
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Black and Box is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Black Knight and Box Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Inc and Black Knight 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 Black Knight 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 Black Knight i.e., Black Knight and Box go up and down completely randomly.
Pair Corralation between Black Knight and Box
If you would invest 2,661 in Box Inc on January 20, 2024 and sell it today you would lose (14.00) from holding Box Inc or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Black Knight vs. Box Inc
Performance |
| Timeline |
| Black Knight |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Box Inc |
Black Knight and Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Knight and Box
The main advantage of trading using opposite Black Knight and Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Knight 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.| Black Knight vs. Paylocity Holdng | Black Knight vs. Paycor HCM | Black Knight vs. Blackbaud | Black Knight vs. Clearwater Analytics Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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