Correlation Between Human Xtensions and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Human Xtensions and Blender Financial 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 Human Xtensions and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Human Xtensions and Blender Financial Technologies, you can compare the effects of market volatilities on Human Xtensions and Blender Financial 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 Human Xtensions with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Human Xtensions and Blender Financial.
Diversification Opportunities for Human Xtensions and Blender Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Human and Blender is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Human Xtensions and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Human Xtensions 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 Human Xtensions are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Human Xtensions i.e., Human Xtensions and Blender Financial go up and down completely randomly.
Pair Corralation between Human Xtensions and Blender Financial
Assuming the 90 days trading horizon Human Xtensions is expected to under-perform the Blender Financial. In addition to that, Human Xtensions is 2.6 times more volatile than Blender Financial Technologies. It trades about -0.04 of its total potential returns per unit of risk. Blender Financial Technologies is currently generating about 0.02 per unit of volatility. If you would invest 35,680 in Blender Financial Technologies on September 14, 2024 and sell it today you would earn a total of 210.00 from holding Blender Financial Technologies or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Human Xtensions vs. Blender Financial Technologies
Performance |
| Timeline |
| Human Xtensions |
| Blender Financial |
Human Xtensions and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Human Xtensions and Blender Financial
The main advantage of trading using opposite Human Xtensions and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Human Xtensions position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| Human Xtensions vs. Blender Financial Technologies | Human Xtensions vs. Automatic Bank Services | Human Xtensions vs. Harel Insurance Investments | Human Xtensions vs. Spuntech |
| Blender Financial vs. Michman Basad | Blender Financial vs. Isracard | Blender Financial vs. Nawi Brothers Group | Blender Financial vs. Menif Financial Services |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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