Correlation Between CHRISTUS and Applied Blockchain
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By analyzing existing cross correlation between CHRISTUS HEALTH 4341 and Applied Blockchain, you can compare the effects of market volatilities on CHRISTUS and Applied Blockchain 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 CHRISTUS with a short position of Applied Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRISTUS and Applied Blockchain.
Diversification Opportunities for CHRISTUS and Applied Blockchain
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CHRISTUS and Applied is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CHRISTUS HEALTH 4341 and Applied Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Blockchain and CHRISTUS 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 CHRISTUS HEALTH 4341 are associated (or correlated) with Applied Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Blockchain has no effect on the direction of CHRISTUS i.e., CHRISTUS and Applied Blockchain go up and down completely randomly.
Pair Corralation between CHRISTUS and Applied Blockchain
Assuming the 90 days trading horizon CHRISTUS is expected to generate 79.95 times less return on investment than Applied Blockchain. But when comparing it to its historical volatility, CHRISTUS HEALTH 4341 is 7.97 times less risky than Applied Blockchain. It trades about 0.01 of its potential returns per unit of risk. Applied Blockchain is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 501.00 in Applied Blockchain on August 29, 2024 and sell it today you would earn a total of 512.00 from holding Applied Blockchain or generate 102.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.59% |
| Values | Daily Returns |
CHRISTUS HEALTH 4341 vs. Applied Blockchain
Performance |
| Timeline |
| CHRISTUS HEALTH 4341 |
| Applied Blockchain |
CHRISTUS and Applied Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRISTUS and Applied Blockchain
The main advantage of trading using opposite CHRISTUS and Applied Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRISTUS position performs unexpectedly, Applied Blockchain 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 Applied Blockchain will offset losses from the drop in Applied Blockchain's long position.| CHRISTUS vs. Sensient Technologies | CHRISTUS vs. Luxfer Holdings PLC | CHRISTUS vs. Ecovyst | CHRISTUS vs. Franklin Wireless Corp |
| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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