Correlation Between Applied Blockchain and Scotts
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By analyzing existing cross correlation between Applied Blockchain and Scotts Miracle Gro 525, you can compare the effects of market volatilities on Applied Blockchain and Scotts 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 Scotts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Scotts.
Diversification Opportunities for Applied Blockchain and Scotts
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and Scotts is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Scotts Miracle Gro 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotts Miracle Gro 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 Scotts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotts Miracle Gro has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and Scotts go up and down completely randomly.
Pair Corralation between Applied Blockchain and Scotts
Given the investment horizon of 90 days Applied Blockchain is expected to generate 7.67 times more return on investment than Scotts. However, Applied Blockchain is 7.67 times more volatile than Scotts Miracle Gro 525. It trades about 0.14 of its potential returns per unit of risk. Scotts Miracle Gro 525 is currently generating about -0.03 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Applied Blockchain vs. Scotts Miracle Gro 525
Performance |
| Timeline |
| Applied Blockchain |
| Scotts Miracle Gro |
Applied Blockchain and Scotts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Scotts
The main advantage of trading using opposite Applied Blockchain and Scotts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, Scotts 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 Scotts will offset losses from the drop in Scotts' long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| Scotts vs. AEP TEX INC | Scotts vs. US BANK NATIONAL | Scotts vs. Applied Blockchain | Scotts 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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