Correlation Between Box and EVO Payments
Can any of the company-specific risk be diversified away by investing in both Box and EVO Payments 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 EVO Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Box Inc and EVO Payments, you can compare the effects of market volatilities on Box and EVO Payments 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 EVO Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Box and EVO Payments.
Diversification Opportunities for Box and EVO Payments
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Box and EVO is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Box Inc and EVO Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVO Payments 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 EVO Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVO Payments has no effect on the direction of Box i.e., Box and EVO Payments go up and down completely randomly.
Pair Corralation between Box and EVO Payments
Considering the 90-day investment horizon Box Inc is expected to under-perform the EVO Payments. In addition to that, Box is 1.0 times more volatile than EVO Payments. It trades about 0.0 of its total potential returns per unit of risk. EVO Payments is currently generating about 0.1 per unit of volatility. If you would invest 2,208 in EVO Payments on January 21, 2024 and sell it today you would earn a total of 1,191 from holding EVO Payments or generate 53.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.77% |
| Values | Daily Returns |
Box Inc vs. EVO Payments
Performance |
| Timeline |
| Box Inc |
| EVO Payments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Box and EVO Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Box and EVO Payments
The main advantage of trading using opposite Box and EVO Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Box position performs unexpectedly, EVO Payments 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 EVO Payments will offset losses from the drop in EVO Payments' long position.The idea behind Box Inc and EVO Payments 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.| EVO Payments vs. Western Asset Investment | EVO Payments vs. SEI Investments | EVO Payments vs. Alternative Investment | EVO Payments vs. Presidio Property Trust |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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