Correlation Between China Galaxy and Blockmate Ventures
Can any of the company-specific risk be diversified away by investing in both China Galaxy and Blockmate Ventures 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 China Galaxy and Blockmate Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Galaxy Securities and Blockmate Ventures, you can compare the effects of market volatilities on China Galaxy and Blockmate Ventures 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 China Galaxy with a short position of Blockmate Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and Blockmate Ventures.
Diversification Opportunities for China Galaxy and Blockmate Ventures
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Blockmate is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities and Blockmate Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockmate Ventures and China Galaxy 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 China Galaxy Securities are associated (or correlated) with Blockmate Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockmate Ventures has no effect on the direction of China Galaxy i.e., China Galaxy and Blockmate Ventures go up and down completely randomly.
Pair Corralation between China Galaxy and Blockmate Ventures
If you would invest 2.92 in Blockmate Ventures on September 1, 2024 and sell it today you would earn a total of 6.58 from holding Blockmate Ventures or generate 225.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
China Galaxy Securities vs. Blockmate Ventures
Performance |
| Timeline |
| China Galaxy Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blockmate Ventures |
China Galaxy and Blockmate Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Galaxy and Blockmate Ventures
The main advantage of trading using opposite China Galaxy and Blockmate Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy position performs unexpectedly, Blockmate Ventures 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 Blockmate Ventures will offset losses from the drop in Blockmate Ventures' long position.| China Galaxy vs. Evercore Partners | China Galaxy vs. Lazard | China Galaxy vs. Moelis Co | China Galaxy vs. PJT Partners |
| Blockmate Ventures vs. Morgan Stanley | Blockmate Ventures vs. Goldman Sachs Group | Blockmate Ventures vs. HUMANA INC | Blockmate Ventures vs. SCOR PK |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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