Correlation Between Box and WixCom

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

By analyzing existing cross correlation between Box Inc and WixCom, you can compare the effects of market volatilities on Box and WixCom 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 WixCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Box and WixCom.

Diversification Opportunities for Box and WixCom

-0.41

Correlation Coefficient

Box  WixCom

Very good diversification

The 3 months correlation between Box and WixCom is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Box Inc and WixCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WixCom 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 WixCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WixCom has no effect on the direction of Box i.e., Box and WixCom go up and down completely randomly.

Pair Corralation between Box and WixCom

Considering the 90-day investment horizon Box Inc is expected to generate 0.85 times more return on investment than WixCom. However, Box Inc is 1.18 times less risky than WixCom. It trades about 0.02 of its potential returns per unit of risk. WixCom is currently generating about -0.13 per unit of risk. If you would invest  3,117  in Box Inc on May 3, 2025 and sell it today you would earn a total of  42.00  from holding Box Inc or generate 1.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Box Inc  vs.  WixCom

Box Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Box Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Box is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

WixCom

Risk-Adjusted Performance

Very Weak

Over the last 90 days WixCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Box and WixCom

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

The idea behind Box Inc and WixCom 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..