Correlation Between Blender Financial and First International
Can any of the company-specific risk be diversified away by investing in both Blender Financial and First International 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 First International 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 First International Bank, you can compare the effects of market volatilities on Blender Financial and First International 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 First International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and First International.
Diversification Opportunities for Blender Financial and First International
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blender and First is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and First International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First International Bank 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 First International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First International Bank has no effect on the direction of Blender Financial i.e., Blender Financial and First International go up and down completely randomly.
Pair Corralation between Blender Financial and First International
Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the First International. In addition to that, Blender Financial is 1.9 times more volatile than First International Bank. It trades about -0.02 of its total potential returns per unit of risk. First International Bank is currently generating about 0.03 per unit of volatility. If you would invest 1,554,153 in First International Bank on August 25, 2024 and sell it today you would earn a total of 160,847 from holding First International Bank or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blender Financial Technologies vs. First International Bank
Performance |
| Timeline |
| Blender Financial |
| First International Bank |
Blender Financial and First International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and First International
The main advantage of trading using opposite Blender Financial and First International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, First International 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 First International will offset losses from the drop in First International's long position.| Blender Financial vs. Sofwave Medical | Blender Financial vs. Scope Metals Group | Blender Financial vs. Bezeq Israeli Telecommunication | Blender Financial vs. Terminal X Online |
| First International vs. Bank Hapoalim | First International vs. Israel Discount Bank | First International vs. Mizrahi Tefahot | First International vs. Bezeq Israeli Telecommunication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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