Correlation Between Opal Balance and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Opal Balance 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 Opal Balance and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opal Balance and Blender Financial Technologies, you can compare the effects of market volatilities on Opal Balance 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 Opal Balance with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opal Balance and Blender Financial.
Diversification Opportunities for Opal Balance and Blender Financial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Opal and Blender is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Opal Balance and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Opal Balance 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 Opal Balance 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 Opal Balance i.e., Opal Balance and Blender Financial go up and down completely randomly.
Pair Corralation between Opal Balance and Blender Financial
Assuming the 90 days trading horizon Opal Balance is expected to generate 7.6 times more return on investment than Blender Financial. However, Opal Balance is 7.6 times more volatile than Blender Financial Technologies. It trades about 0.16 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.26 per unit of risk. If you would invest 23,270 in Opal Balance on November 27, 2024 and sell it today you would earn a total of 1,280 from holding Opal Balance or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opal Balance vs. Blender Financial Technologies
Performance |
| Timeline |
| Opal Balance |
| Blender Financial |
Opal Balance and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opal Balance and Blender Financial
The main advantage of trading using opposite Opal Balance and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opal Balance 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.| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
| Blender Financial vs. More Mutual Funds | Blender Financial vs. Oron Group Investments | Blender Financial vs. Amanet Management Systems | Blender Financial vs. YD More Investments |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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