Correlation Between Blink Charging and AYRO
Can any of the company-specific risk be diversified away by investing in both Blink Charging and AYRO 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 Blink Charging and AYRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blink Charging Co and AYRO Inc, you can compare the effects of market volatilities on Blink Charging and AYRO 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 Blink Charging with a short position of AYRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and AYRO.
Diversification Opportunities for Blink Charging and AYRO
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blink and AYRO is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and AYRO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYRO Inc and Blink Charging 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 Blink Charging Co are associated (or correlated) with AYRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYRO Inc has no effect on the direction of Blink Charging i.e., Blink Charging and AYRO go up and down completely randomly.
Pair Corralation between Blink Charging and AYRO
Given the investment horizon of 90 days Blink Charging Co is expected to under-perform the AYRO. In addition to that, Blink Charging is 2.69 times more volatile than AYRO Inc. It trades about -0.16 of its total potential returns per unit of risk. AYRO Inc is currently generating about 0.01 per unit of volatility. If you would invest 78.00 in AYRO Inc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding AYRO Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blink Charging Co vs. AYRO Inc
Performance |
| Timeline |
| Blink Charging |
| AYRO Inc |
Blink Charging and AYRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blink Charging and AYRO
The main advantage of trading using opposite Blink Charging and AYRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blink Charging position performs unexpectedly, AYRO 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 AYRO will offset losses from the drop in AYRO's long position.| Blink Charging vs. Comfort Systems USA | Blink Charging vs. MasTec Inc | Blink Charging vs. EMCOR Group | Blink Charging vs. Granite Construction Incorporated |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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