Correlation Between Applied Blockchain and CP ALL
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain and CP ALL 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 Applied Blockchain and CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and CP ALL Public, you can compare the effects of market volatilities on Applied Blockchain and CP ALL 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 Applied Blockchain with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and CP ALL.
Diversification Opportunities for Applied Blockchain and CP ALL
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Applied and CVPBF is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and CP ALL go up and down completely randomly.
Pair Corralation between Applied Blockchain and CP ALL
If you would invest 676.00 in Applied Blockchain on September 1, 2024 and sell it today you would earn a total of 368.00 from holding Applied Blockchain or generate 54.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. CP ALL Public
Performance |
| Timeline |
| Applied Blockchain |
| CP ALL Public |
Applied Blockchain and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and CP ALL
The main advantage of trading using opposite Applied Blockchain and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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