Correlation Between Backblaze and Cemtrex
Can any of the company-specific risk be diversified away by investing in both Backblaze and Cemtrex 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 Backblaze and Cemtrex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Backblaze and Cemtrex, you can compare the effects of market volatilities on Backblaze and Cemtrex 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 Backblaze with a short position of Cemtrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Backblaze and Cemtrex.
Diversification Opportunities for Backblaze and Cemtrex
Pay attention - limited upside
The 3 months correlation between Backblaze and Cemtrex is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Backblaze and Cemtrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtrex and Backblaze 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 Backblaze are associated (or correlated) with Cemtrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtrex has no effect on the direction of Backblaze i.e., Backblaze and Cemtrex go up and down completely randomly.
Pair Corralation between Backblaze and Cemtrex
Given the investment horizon of 90 days Backblaze is expected to generate 0.38 times more return on investment than Cemtrex. However, Backblaze is 2.63 times less risky than Cemtrex. It trades about -0.06 of its potential returns per unit of risk. Cemtrex is currently generating about -0.22 per unit of risk. If you would invest 726.00 in Backblaze on August 28, 2024 and sell it today you would lose (66.00) from holding Backblaze or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Backblaze vs. Cemtrex
Performance |
| Timeline |
| Backblaze |
| Cemtrex |
Backblaze and Cemtrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Backblaze and Cemtrex
The main advantage of trading using opposite Backblaze and Cemtrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Backblaze position performs unexpectedly, Cemtrex 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 Cemtrex will offset losses from the drop in Cemtrex's long position.| Backblaze vs. ACI Worldwide | Backblaze vs. Remitly Global | Backblaze vs. EverCommerce | Backblaze vs. Global Blue Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |