Correlation Between Blend Labs and Walkme

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

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

Diversification Opportunities for Blend Labs and Walkme

-0.13

Correlation Coefficient

Blend Labs  Walkme

Good diversification

The 3 months correlation between Blend and Walkme is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Blend Labs and Walkme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walkme and Blend Labs 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 Blend Labs are associated (or correlated) with Walkme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walkme has no effect on the direction of Blend Labs i.e., Blend Labs and Walkme go up and down completely randomly.

Pair Corralation between Blend Labs and Walkme

If you would invest  1,395  in Walkme on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Walkme or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Blend Labs  vs.  Walkme

Blend Labs

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blend Labs are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Blend Labs exhibited solid returns over the last few months and may actually be approaching a breakup point.

Walkme

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Walkme has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Walkme is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blend Labs and Walkme

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

The idea behind Blend Labs and Walkme 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.