Correlation Between Blink Charging and Fisker
Can any of the company-specific risk be diversified away by investing in both Blink Charging and Fisker 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 Fisker 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 Fisker Inc, you can compare the effects of market volatilities on Blink Charging and Fisker 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 Fisker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and Fisker.
Diversification Opportunities for Blink Charging and Fisker
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blink and Fisker is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and Fisker Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisker 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 Fisker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisker Inc has no effect on the direction of Blink Charging i.e., Blink Charging and Fisker go up and down completely randomly.
Pair Corralation between Blink Charging and Fisker
Given the investment horizon of 90 days Blink Charging Co is expected to under-perform the Fisker. But the stock apears to be less risky and, when comparing its historical volatility, Blink Charging Co is 1.2 times less risky than Fisker. The stock trades about -0.04 of its potential returns per unit of risk. The Fisker Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 596.00 in Fisker Inc on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Fisker Inc or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 3.95% |
| Values | Daily Returns |
Blink Charging Co vs. Fisker Inc
Performance |
| Timeline |
| Blink Charging |
| Fisker Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blink Charging and Fisker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blink Charging and Fisker
The main advantage of trading using opposite Blink Charging and Fisker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blink Charging position performs unexpectedly, Fisker 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 Fisker will offset losses from the drop in Fisker'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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