Correlation Between Blender Financial and MediPress Health

Can any of the company-specific risk be diversified away by investing in both Blender Financial and MediPress Health 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 MediPress Health 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 MediPress Health Limited Partnership, you can compare the effects of market volatilities on Blender Financial and MediPress Health 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 MediPress Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and MediPress Health.

Diversification Opportunities for Blender Financial and MediPress Health

-0.11

Correlation Coefficient

Blender Financial  MediPress Health

Good diversification

The 3 months correlation between Blender and MediPress is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and MediPress Health Limited Partn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediPress Health Lim 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 MediPress Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediPress Health Lim has no effect on the direction of Blender Financial i.e., Blender Financial and MediPress Health go up and down completely randomly.

Pair Corralation between Blender Financial and MediPress Health

Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the MediPress Health. In addition to that, Blender Financial is 1.89 times more volatile than MediPress Health Limited Partnership. It trades about -0.07 of its total potential returns per unit of risk. MediPress Health Limited Partnership is currently generating about 0.09 per unit of volatility. If you would invest  7,530  in MediPress Health Limited Partnership on September 15, 2024 and sell it today you would earn a total of  610.00  from holding MediPress Health Limited Partnership or generate 8.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.87%
Values	Daily Returns

Blender Financial Technologies  vs.  MediPress Health Limited Partn

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.

MediPress Health Lim

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MediPress Health Limited Partnership are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MediPress Health may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Blender Financial and MediPress Health

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

The idea behind Blender Financial Technologies and MediPress Health Limited Partnership 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.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.