Correlation Between Boxlight Corp and Minim

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

Diversification Opportunities for Boxlight Corp and Minim

0.6

Correlation Coefficient

Boxlight Corp  Minim

Poor diversification

The 3 months correlation between Boxlight and Minim is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Boxlight Corp Class and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc 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 Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of Boxlight Corp i.e., Boxlight Corp and Minim go up and down completely randomly.

Pair Corralation between Boxlight Corp and Minim

Given the investment horizon of 90 days Boxlight Corp is expected to generate 8.91 times less return on investment than Minim. But when comparing it to its historical volatility, Boxlight Corp Class is 5.12 times less risky than Minim. It trades about 0.1 of its potential returns per unit of risk. Minim Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Minim Inc on May 1, 2025 and sell it today you would earn a total of  236.00  from holding Minim Inc or generate 248.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	77.42%
Values	Daily Returns

Boxlight Corp Class  vs.  Minim Inc

Boxlight Corp Class

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Boxlight Corp Class are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Boxlight Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Minim Inc

Risk-Adjusted Performance

Good

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very uncertain basic indicators, Minim displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boxlight Corp and Minim

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

The idea behind Boxlight Corp Class and Minim Inc 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .