Correlation Between Wesure Global and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Wesure Global 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 Wesure Global and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesure Global Tech and Blender Financial Technologies, you can compare the effects of market volatilities on Wesure Global 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 Wesure Global with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesure Global and Blender Financial.
Diversification Opportunities for Wesure Global and Blender Financial
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wesure and Blender is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wesure Global Tech and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Wesure Global 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 Wesure Global Tech 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 Wesure Global i.e., Wesure Global and Blender Financial go up and down completely randomly.
Pair Corralation between Wesure Global and Blender Financial
Assuming the 90 days trading horizon Wesure Global Tech is expected to generate 0.94 times more return on investment than Blender Financial. However, Wesure Global Tech is 1.06 times less risky than Blender Financial. It trades about 0.64 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.34 per unit of risk. If you would invest 36,000 in Wesure Global Tech on August 29, 2024 and sell it today you would earn a total of 12,220 from holding Wesure Global Tech or generate 33.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesure Global Tech vs. Blender Financial Technologies
Performance |
| Timeline |
| Wesure Global Tech |
| Blender Financial |
Wesure Global and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesure Global and Blender Financial
The main advantage of trading using opposite Wesure Global and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesure Global 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.| Wesure Global vs. Brainsway | Wesure Global vs. Mivne Real Estate | Wesure Global vs. Photomyne | Wesure Global vs. Bezeq Israeli Telecommunication |
| Blender Financial vs. Wilk Technologies | Blender Financial vs. YH Dimri Construction | Blender Financial vs. Bezeq Israeli Telecommunication | Blender Financial vs. Teuza A Fairchild |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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