Correlation Between Blender Financial and Spuntech
Can any of the company-specific risk be diversified away by investing in both Blender Financial and Spuntech 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 Spuntech 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 Spuntech, you can compare the effects of market volatilities on Blender Financial and Spuntech 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 Spuntech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and Spuntech.
Diversification Opportunities for Blender Financial and Spuntech
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blender and Spuntech is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Spuntech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spuntech 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 Spuntech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spuntech has no effect on the direction of Blender Financial i.e., Blender Financial and Spuntech go up and down completely randomly.
Pair Corralation between Blender Financial and Spuntech
Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the Spuntech. In addition to that, Blender Financial is 1.16 times more volatile than Spuntech. It trades about -0.34 of its total potential returns per unit of risk. Spuntech is currently generating about 0.3 per unit of volatility. If you would invest 43,720 in Spuntech on August 29, 2024 and sell it today you would earn a total of 5,760 from holding Spuntech or generate 13.17% 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. Spuntech
Performance |
| Timeline |
| Blender Financial |
| Spuntech |
Blender Financial and Spuntech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and Spuntech
The main advantage of trading using opposite Blender Financial and Spuntech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, Spuntech 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 Spuntech will offset losses from the drop in Spuntech's long position.| Blender Financial vs. Wilk Technologies | Blender Financial vs. YH Dimri Construction | Blender Financial vs. Bezeq Israeli Telecommunication | Blender Financial vs. Teuza A Fairchild |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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