Correlation Between Blender Financial and IDI Insurance
Can any of the company-specific risk be diversified away by investing in both Blender Financial and IDI Insurance 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 IDI Insurance 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 IDI Insurance, you can compare the effects of market volatilities on Blender Financial and IDI Insurance 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 IDI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and IDI Insurance.
Diversification Opportunities for Blender Financial and IDI Insurance
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blender and IDI is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and IDI Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDI Insurance 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 IDI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDI Insurance has no effect on the direction of Blender Financial i.e., Blender Financial and IDI Insurance go up and down completely randomly.
Pair Corralation between Blender Financial and IDI Insurance
Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the IDI Insurance. In addition to that, Blender Financial is 1.46 times more volatile than IDI Insurance. It trades about -0.33 of its total potential returns per unit of risk. IDI Insurance is currently generating about 0.13 per unit of volatility. If you would invest 1,275,000 in IDI Insurance on August 29, 2024 and sell it today you would earn a total of 55,000 from holding IDI Insurance or generate 4.31% 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. IDI Insurance
Performance |
| Timeline |
| Blender Financial |
| IDI Insurance |
Blender Financial and IDI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and IDI Insurance
The main advantage of trading using opposite Blender Financial and IDI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, IDI Insurance 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 IDI Insurance will offset losses from the drop in IDI Insurance's long position.| Blender Financial vs. Menif Financial Services | Blender Financial vs. Bull Trading And | Blender Financial vs. Opal Balance | Blender Financial vs. B Communications |
| IDI Insurance vs. Elbit Systems | IDI Insurance vs. Discount Investment Corp | IDI Insurance vs. Clal Insurance Enterprises | IDI Insurance vs. AudioCodes |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |