Correlation Between Applied Blockchain and Garden Stage
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain and Garden Stage 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 Garden Stage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Garden Stage Limited, you can compare the effects of market volatilities on Applied Blockchain and Garden Stage 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 Garden Stage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Garden Stage.
Diversification Opportunities for Applied Blockchain and Garden Stage
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and Garden is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Garden Stage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garden Stage Limited 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 Garden Stage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garden Stage Limited has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and Garden Stage go up and down completely randomly.
Pair Corralation between Applied Blockchain and Garden Stage
Given the investment horizon of 90 days Applied Blockchain is expected to generate 1.14 times more return on investment than Garden Stage. However, Applied Blockchain is 1.14 times more volatile than Garden Stage Limited. It trades about 0.44 of its potential returns per unit of risk. Garden Stage Limited is currently generating about -0.23 per unit of risk. If you would invest 597.00 in Applied Blockchain on September 4, 2024 and sell it today you would earn a total of 442.00 from holding Applied Blockchain or generate 74.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. Garden Stage Limited
Performance |
| Timeline |
| Applied Blockchain |
| Garden Stage Limited |
Applied Blockchain and Garden Stage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Garden Stage
The main advantage of trading using opposite Applied Blockchain and Garden Stage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, Garden Stage 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 Garden Stage will offset losses from the drop in Garden Stage's long position.| Applied Blockchain vs. Innodata | Applied Blockchain vs. International Business Machines | Applied Blockchain vs. Aurora Innovation | Applied Blockchain vs. BigBearai Holdings |
| Garden Stage vs. Goldman Sachs Group | Garden Stage vs. Applied Blockchain | Garden Stage vs. Hut 8 Corp | Garden Stage vs. Bitfarms |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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