Correlation Between AdvanceTC and Blonder Tongue

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

By analyzing existing cross correlation between AdvanceTC Limited and Blonder Tongue Laboratories, you can compare the effects of market volatilities on AdvanceTC and Blonder Tongue 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 AdvanceTC with a short position of Blonder Tongue. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvanceTC and Blonder Tongue.

Diversification Opportunities for AdvanceTC and Blonder Tongue

-0.49

Correlation Coefficient

AdvanceTC  Blonder Tongue

Very good diversification

The 3 months correlation between AdvanceTC and Blonder is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AdvanceTC Limited and Blonder Tongue Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blonder Tongue Labor and AdvanceTC 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 AdvanceTC Limited are associated (or correlated) with Blonder Tongue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blonder Tongue Labor has no effect on the direction of AdvanceTC i.e., AdvanceTC and Blonder Tongue go up and down completely randomly.

Pair Corralation between AdvanceTC and Blonder Tongue

If you would invest  0.11  in AdvanceTC Limited on September 4, 2024 and sell it today you would earn a total of  0.00  from holding AdvanceTC Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

AdvanceTC Limited  vs.  Blonder Tongue Laboratories

AdvanceTC Limited

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AdvanceTC Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating essential indicators, AdvanceTC reported solid returns over the last few months and may actually be approaching a breakup point.

Blonder Tongue Labor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blonder Tongue Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Blonder Tongue is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with AdvanceTC and Blonder Tongue

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

The idea behind AdvanceTC Limited and Blonder Tongue Laboratories 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.