Correlation Between BLZ and KICK

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

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

Diversification Opportunities for BLZ and KICK

0.0

Correlation Coefficient

BLZ  KICK

Pay attention - limited upside

The 3 months correlation between BLZ and KICK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BLZ and KICK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KICK and BLZ 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 BLZ are associated (or correlated) with KICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KICK has no effect on the direction of BLZ i.e., BLZ and KICK go up and down completely randomly.

Pair Corralation between BLZ and KICK

If you would invest  11.00  in BLZ on September 2, 2024 and sell it today you would earn a total of  5.00  from holding BLZ or generate 45.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.52%
Values	Daily Returns

BLZ  vs.  KICK

BLZ

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BLZ are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, BLZ exhibited solid returns over the last few months and may actually be approaching a breakup point.

KICK

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with BLZ and KICK

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

The idea behind BLZ and KICK 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.