Correlation Between Blender Financial and Isracard

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

By analyzing existing cross correlation between Blender Financial Technologies and Isracard, you can compare the effects of market volatilities on Blender Financial and Isracard 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 Blender Financial with a short position of Isracard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and Isracard.

Diversification Opportunities for Blender Financial and Isracard

-0.73

Correlation Coefficient

Blender Financial  Isracard

Pay attention - limited upside

The 3 months correlation between Blender and Isracard is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Isracard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isracard and Blender Financial 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 Blender Financial Technologies are associated (or correlated) with Isracard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isracard has no effect on the direction of Blender Financial i.e., Blender Financial and Isracard go up and down completely randomly.

Pair Corralation between Blender Financial and Isracard

Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the Isracard. In addition to that, Blender Financial is 2.8 times more volatile than Isracard. It trades about -0.07 of its total potential returns per unit of risk. Isracard is currently generating about 0.27 per unit of volatility. If you would invest  132,300  in Isracard on September 14, 2024 and sell it today you would earn a total of  25,300  from holding Isracard or generate 19.12% return on investment over 90 days.

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

Blender Financial Technologies  vs.  Isracard

Blender Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blender Financial Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Isracard

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Isracard are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Isracard sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blender Financial and Isracard

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

The idea behind Blender Financial Technologies and Isracard 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.