Correlation Between Blender Financial and Retailors
Can any of the company-specific risk be diversified away by investing in both Blender Financial and Retailors 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 Retailors 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 Retailors, you can compare the effects of market volatilities on Blender Financial and Retailors 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 Retailors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and Retailors.
Diversification Opportunities for Blender Financial and Retailors
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blender and Retailors is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors 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 Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of Blender Financial i.e., Blender Financial and Retailors go up and down completely randomly.
Pair Corralation between Blender Financial and Retailors
Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the Retailors. In addition to that, Blender Financial is 1.04 times more volatile than Retailors. It trades about -0.28 of its total potential returns per unit of risk. Retailors is currently generating about 0.1 per unit of volatility. If you would invest 641,300 in Retailors on August 25, 2024 and sell it today you would earn a total of 24,700 from holding Retailors or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blender Financial Technologies vs. Retailors
Performance |
| Timeline |
| Blender Financial |
| Retailors |
Blender Financial and Retailors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and Retailors
The main advantage of trading using opposite Blender Financial and Retailors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, Retailors 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 Retailors will offset losses from the drop in Retailors' 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 |
| Retailors vs. Nice | Retailors vs. The Gold Bond | Retailors vs. Bank Leumi Le Israel | Retailors vs. ICL Israel Chemicals |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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