Correlation Between Applied Blockchain and KENNAMETAL
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By analyzing existing cross correlation between Applied Blockchain and KENNAMETAL INC 4625, you can compare the effects of market volatilities on Applied Blockchain and KENNAMETAL 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 KENNAMETAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and KENNAMETAL.
Diversification Opportunities for Applied Blockchain and KENNAMETAL
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Applied and KENNAMETAL is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and KENNAMETAL INC 4625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENNAMETAL INC 4625 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 KENNAMETAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENNAMETAL INC 4625 has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and KENNAMETAL go up and down completely randomly.
Pair Corralation between Applied Blockchain and KENNAMETAL
Given the investment horizon of 90 days Applied Blockchain is expected to generate 5.63 times more return on investment than KENNAMETAL. However, Applied Blockchain is 5.63 times more volatile than KENNAMETAL INC 4625. It trades about 0.14 of its potential returns per unit of risk. KENNAMETAL INC 4625 is currently generating about -0.17 per unit of risk. If you would invest 758.00 in Applied Blockchain on September 12, 2024 and sell it today you would earn a total of 136.00 from holding Applied Blockchain or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Applied Blockchain vs. KENNAMETAL INC 4625
Performance |
| Timeline |
| Applied Blockchain |
| KENNAMETAL INC 4625 |
Applied Blockchain and KENNAMETAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and KENNAMETAL
The main advantage of trading using opposite Applied Blockchain and KENNAMETAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, KENNAMETAL 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 KENNAMETAL will offset losses from the drop in KENNAMETAL's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| KENNAMETAL vs. AEP TEX INC | KENNAMETAL vs. US BANK NATIONAL | KENNAMETAL vs. Applied Blockchain | KENNAMETAL 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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