Correlation Between Polygon Ecosystem and BLZ

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Can any of the company-specific risk be diversified away by investing in both Polygon Ecosystem and BLZ 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 Polygon Ecosystem and BLZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polygon Ecosystem Token and BLZ, you can compare the effects of market volatilities on Polygon Ecosystem and BLZ 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 Polygon Ecosystem with a short position of BLZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygon Ecosystem and BLZ.

Diversification Opportunities for Polygon Ecosystem and BLZ

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Polygon and BLZ is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Polygon Ecosystem Token and BLZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLZ and Polygon Ecosystem 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 Polygon Ecosystem Token are associated (or correlated) with BLZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLZ has no effect on the direction of Polygon Ecosystem i.e., Polygon Ecosystem and BLZ go up and down completely randomly.

Pair Corralation between Polygon Ecosystem and BLZ

Assuming the 90 days trading horizon Polygon Ecosystem Token is expected to under-perform the BLZ. But the crypto coin apears to be less risky and, when comparing its historical volatility, Polygon Ecosystem Token is 1.36 times less risky than BLZ. The crypto coin trades about -0.06 of its potential returns per unit of risk. The BLZ is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  11.00  in BLZ on November 8, 2024 and sell it today you would lose (6.39) from holding BLZ or give up 58.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy35.91%
ValuesDaily Returns

Polygon Ecosystem Token  vs.  BLZ

 Performance 
       Timeline  
Polygon Ecosystem Token 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Polygon Ecosystem Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Polygon Ecosystem Token shareholders.
BLZ 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days BLZ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for BLZ shareholders.

Polygon Ecosystem and BLZ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Polygon Ecosystem and BLZ

The main advantage of trading using opposite Polygon Ecosystem and BLZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon Ecosystem position performs unexpectedly, BLZ 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 BLZ will offset losses from the drop in BLZ's long position.
The idea behind Polygon Ecosystem Token and BLZ pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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