Correlation Between Blender Financial and Aerodrome
Can any of the company-specific risk be diversified away by investing in both Blender Financial and Aerodrome 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 Blender Financial and Aerodrome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blender Financial Technologies and Aerodrome Group, you can compare the effects of market volatilities on Blender Financial and Aerodrome 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 Blender Financial with a short position of Aerodrome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and Aerodrome.
Diversification Opportunities for Blender Financial and Aerodrome
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blender and Aerodrome is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Aerodrome Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerodrome Group and Blender Financial 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 Blender Financial Technologies are associated (or correlated) with Aerodrome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerodrome Group has no effect on the direction of Blender Financial i.e., Blender Financial and Aerodrome go up and down completely randomly.
Pair Corralation between Blender Financial and Aerodrome
Assuming the 90 days trading horizon Blender Financial Technologies is expected to generate 0.74 times more return on investment than Aerodrome. However, Blender Financial Technologies is 1.35 times less risky than Aerodrome. It trades about 0.27 of its potential returns per unit of risk. Aerodrome Group is currently generating about 0.14 per unit of risk. If you would invest 36,030 in Blender Financial Technologies on November 3, 2024 and sell it today you would earn a total of 5,260 from holding Blender Financial Technologies or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blender Financial Technologies vs. Aerodrome Group
Performance |
| Timeline |
| Blender Financial |
| Aerodrome Group |
Blender Financial and Aerodrome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and Aerodrome
The main advantage of trading using opposite Blender Financial and Aerodrome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, Aerodrome 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 Aerodrome will offset losses from the drop in Aerodrome's long position.| Blender Financial vs. YD More Investments | Blender Financial vs. Oron Group Investments | Blender Financial vs. Magic Software Enterprises | Blender Financial vs. Discount Investment Corp |
| Aerodrome vs. Teuza A Fairchild | Aerodrome vs. Global Knafaim Leasing | Aerodrome vs. Libra Insurance | Aerodrome vs. Azorim Investment Development |
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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