Correlation Between CurrentC Power and Blackline Safety

Can any of the company-specific risk be diversified away by investing in both CurrentC Power and Blackline Safety 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 CurrentC Power and Blackline Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CurrentC Power and Blackline Safety Corp, you can compare the effects of market volatilities on CurrentC Power and Blackline Safety 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 CurrentC Power with a short position of Blackline Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and Blackline Safety.

Diversification Opportunities for CurrentC Power and Blackline Safety

0.43

Correlation Coefficient

CurrentC Power  Blackline Safety

Very weak diversification

The 3 months correlation between CurrentC and Blackline is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Blackline Safety Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackline Safety Corp and CurrentC Power 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 CurrentC Power are associated (or correlated) with Blackline Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackline Safety Corp has no effect on the direction of CurrentC Power i.e., CurrentC Power and Blackline Safety go up and down completely randomly.

Pair Corralation between CurrentC Power and Blackline Safety

Given the investment horizon of 90 days CurrentC Power is expected to generate 13.82 times more return on investment than Blackline Safety. However, CurrentC Power is 13.82 times more volatile than Blackline Safety Corp. It trades about 0.12 of its potential returns per unit of risk. Blackline Safety Corp is currently generating about 0.11 per unit of risk. If you would invest  12.00  in CurrentC Power on September 12, 2024 and sell it today you would earn a total of  1.00  from holding CurrentC Power or generate 8.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CurrentC Power  vs.  Blackline Safety Corp

CurrentC Power

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Blackline Safety Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackline Safety Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Blackline Safety reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CurrentC Power and Blackline Safety

The main advantage of trading using opposite CurrentC Power and Blackline Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power position performs unexpectedly, Blackline Safety 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 Blackline Safety will offset losses from the drop in Blackline Safety's long position.

The idea behind CurrentC Power and Blackline Safety Corp 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.