Correlation Between Blackhawk Growth and CBH

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

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

Diversification Opportunities for Blackhawk Growth and CBH

-0.84

Correlation Coefficient

Blackhawk Growth  CBH

Pay attention - limited upside

The 3 months correlation between Blackhawk and CBH is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Growth Corp and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Blackhawk Growth 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 Blackhawk Growth Corp are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Blackhawk Growth i.e., Blackhawk Growth and CBH go up and down completely randomly.

Pair Corralation between Blackhawk Growth and CBH

If you would invest  919.00  in CBH on September 4, 2024 and sell it today you would earn a total of  0.00  from holding CBH or generate 0.0% return on investment over 90 days.

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

Blackhawk Growth Corp  vs.  CBH

Blackhawk Growth Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackhawk Growth Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CBH

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CBH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, CBH is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Blackhawk Growth and CBH

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

The idea behind Blackhawk Growth Corp and CBH 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.