Correlation Between Western Union and Global Blockchain
Can any of the company-specific risk be diversified away by investing in both Western Union and Global Blockchain 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 Western Union and Global Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and Global Blockchain Acquisition, you can compare the effects of market volatilities on Western Union and Global 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 Western Union with a short position of Global Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and Global Blockchain.
Diversification Opportunities for Western Union and Global Blockchain
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Global is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and Global Blockchain Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blockchain and Western Union 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 Western Union Co are associated (or correlated) with Global Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blockchain has no effect on the direction of Western Union i.e., Western Union and Global Blockchain go up and down completely randomly.
Pair Corralation between Western Union and Global Blockchain
Allowing for the 90-day total investment horizon Western Union is expected to generate 1.46 times less return on investment than Global Blockchain. In addition to that, Western Union is 2.04 times more volatile than Global Blockchain Acquisition. It trades about 0.01 of its total potential returns per unit of risk. Global Blockchain Acquisition is currently generating about 0.03 per unit of volatility. If you would invest 1,042 in Global Blockchain Acquisition on August 26, 2024 and sell it today you would earn a total of 68.00 from holding Global Blockchain Acquisition or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Union Co vs. Global Blockchain Acquisition
Performance |
| Timeline |
| Western Union |
| Global Blockchain |
Western Union and Global Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Union and Global Blockchain
The main advantage of trading using opposite Western Union and Global Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union position performs unexpectedly, Global 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 Global Blockchain will offset losses from the drop in Global Blockchain's long position.| Western Union vs. American Express | Western Union vs. Morningstar Unconstrained Allocation | Western Union vs. Sitka Gold Corp | Western Union vs. MSCI ACWI exAUCONSUMER |
| Global Blockchain vs. Embrace Change Acquisition | Global Blockchain vs. Bannix Acquisition Corp | Global Blockchain vs. TransAKT | Global Blockchain vs. China Health Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |