Correlation Between Shenzhen Longsys and Boxlight Corp

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Can any of the company-specific risk be diversified away by investing in both Shenzhen Longsys 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 Shenzhen Longsys and Boxlight Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenzhen Longsys Electronics and Boxlight Corp Class, you can compare the effects of market volatilities on Shenzhen Longsys 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 Shenzhen Longsys with a short position of Boxlight Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Longsys and Boxlight Corp.

Diversification Opportunities for Shenzhen Longsys and Boxlight Corp

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Shenzhen and Boxlight is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Longsys Electronics 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 Shenzhen Longsys 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 Shenzhen Longsys Electronics 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 Shenzhen Longsys i.e., Shenzhen Longsys and Boxlight Corp go up and down completely randomly.

Pair Corralation between Shenzhen Longsys and Boxlight Corp

Assuming the 90 days trading horizon Shenzhen Longsys Electronics is expected to generate 0.22 times more return on investment than Boxlight Corp. However, Shenzhen Longsys Electronics is 4.5 times less risky than Boxlight Corp. It trades about 0.27 of its potential returns per unit of risk. Boxlight Corp Class is currently generating about 0.03 per unit of risk. If you would invest  9,695  in Shenzhen Longsys Electronics on September 8, 2025 and sell it today you would earn a total of  14,118  from holding Shenzhen Longsys Electronics or generate 145.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy92.31%
ValuesDaily Returns

Shenzhen Longsys Electronics  vs.  Boxlight Corp Class

 Performance 
       Timeline  
Shenzhen Longsys Ele 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Longsys Electronics are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shenzhen Longsys sustained solid returns over the last few months and may actually be approaching a breakup point.
Boxlight Corp Class 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Boxlight Corp Class are ranked lower than 2 (%) 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.

Shenzhen Longsys and Boxlight Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shenzhen Longsys and Boxlight Corp

The main advantage of trading using opposite Shenzhen Longsys and Boxlight Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Longsys 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 Shenzhen Longsys Electronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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