Correlation Between Blockchain Coinvestors and Graf Global

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

By analyzing existing cross correlation between Blockchain Coinvestors Acquisition and Graf Global Corp, you can compare the effects of market volatilities on Blockchain Coinvestors and Graf Global 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 Blockchain Coinvestors with a short position of Graf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Coinvestors and Graf Global.

Diversification Opportunities for Blockchain Coinvestors and Graf Global

-0.65

Correlation Coefficient

Blockchain Coinvestors  Graf Global

Excellent diversification

The 3 months correlation between Blockchain and Graf is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Coinvestors Acquisi and Graf Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Global Corp and Blockchain Coinvestors 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 Blockchain Coinvestors Acquisition are associated (or correlated) with Graf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Global Corp has no effect on the direction of Blockchain Coinvestors i.e., Blockchain Coinvestors and Graf Global go up and down completely randomly.

Pair Corralation between Blockchain Coinvestors and Graf Global

Assuming the 90 days horizon Blockchain Coinvestors Acquisition is expected to generate 570.79 times more return on investment than Graf Global. However, Blockchain Coinvestors is 570.79 times more volatile than Graf Global Corp. It trades about 0.14 of its potential returns per unit of risk. Graf Global Corp is currently generating about 0.22 per unit of risk. If you would invest  0.25  in Blockchain Coinvestors Acquisition on September 4, 2024 and sell it today you would lose (0.16) from holding Blockchain Coinvestors Acquisition or give up 64.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	38.1%
Values	Daily Returns

Blockchain Coinvestors Acquisi  vs.  Graf Global Corp

Blockchain Coinvestors

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Blockchain Coinvestors Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Blockchain Coinvestors showed solid returns over the last few months and may actually be approaching a breakup point.

Graf Global Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graf Global Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Graf Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Blockchain Coinvestors and Graf Global

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

The idea behind Blockchain Coinvestors Acquisition and Graf Global 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..