Correlation Between Applied Blockchain and FEDEX
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By analyzing existing cross correlation between Applied Blockchain and FEDEX P 44, you can compare the effects of market volatilities on Applied Blockchain and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and FEDEX.
Diversification Opportunities for Applied Blockchain and FEDEX
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and FEDEX is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and FEDEX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 44 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 44 has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and FEDEX go up and down completely randomly.
Pair Corralation between Applied Blockchain and FEDEX
Given the investment horizon of 90 days Applied Blockchain is expected to generate 6.79 times less return on investment than FEDEX. But when comparing it to its historical volatility, Applied Blockchain is 8.39 times less risky than FEDEX. It trades about 0.08 of its potential returns per unit of risk. FEDEX P 44 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,047 in FEDEX P 44 on September 14, 2024 and sell it today you would earn a total of 335.00 from holding FEDEX P 44 or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.41% |
| Values | Daily Returns |
Applied Blockchain vs. FEDEX P 44
Performance |
| Timeline |
| Applied Blockchain |
| FEDEX P 44 |
Applied Blockchain and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and FEDEX
The main advantage of trading using opposite Applied Blockchain and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| FEDEX vs. AEP TEX INC | FEDEX vs. US BANK NATIONAL | FEDEX vs. Applied Blockchain | FEDEX vs. BigBearai Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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