Correlation Between PURA and BLZ
Can any of the company-specific risk be diversified away by investing in both PURA 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 PURA and BLZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PURA and BLZ, you can compare the effects of market volatilities on PURA 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 PURA with a short position of BLZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of PURA and BLZ.
Diversification Opportunities for PURA and BLZ
Pay attention - limited upside
The 3 months correlation between PURA and BLZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PURA and BLZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLZ and PURA 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 PURA 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 PURA i.e., PURA and BLZ go up and down completely randomly.
Pair Corralation between PURA and BLZ
If you would invest 3.10 in PURA on November 1, 2024 and sell it today you would earn a total of 0.00 from holding PURA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.18% |
| Values | Daily Returns |
PURA vs. BLZ
Performance |
| Timeline |
| PURA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BLZ |
PURA and BLZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PURA and BLZ
The main advantage of trading using opposite PURA and BLZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PURA 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 PURA 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |