Correlation Between Blender Financial and Safe T
Can any of the company-specific risk be diversified away by investing in both Blender Financial and Safe T 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 Safe T 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 Safe T Group, you can compare the effects of market volatilities on Blender Financial and Safe T 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 Safe T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and Safe T.
Diversification Opportunities for Blender Financial and Safe T
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blender and Safe is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Safe T Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe T 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 Safe T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe T Group has no effect on the direction of Blender Financial i.e., Blender Financial and Safe T go up and down completely randomly.
Pair Corralation between Blender Financial and Safe T
Assuming the 90 days trading horizon Blender Financial Technologies is expected to generate 1.06 times more return on investment than Safe T. However, Blender Financial is 1.06 times more volatile than Safe T Group. It trades about 0.27 of its potential returns per unit of risk. Safe T Group is currently generating about -0.25 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blender Financial Technologies vs. Safe T Group
Performance |
| Timeline |
| Blender Financial |
| Safe T Group |
Blender Financial and Safe T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and Safe T
The main advantage of trading using opposite Blender Financial and Safe T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, Safe T 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 Safe T will offset losses from the drop in Safe T'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 |
| Safe T vs. Polyram Plastic Industries | Safe T vs. Golan Plastic | Safe T vs. RSL Electronics | Safe T vs. Retailors |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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