Correlation Between Slate Grocery and Blockmate Ventures

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

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

Diversification Opportunities for Slate Grocery and Blockmate Ventures

0.38

Correlation Coefficient

Slate Grocery  Blockmate Ventures

Weak diversification

The 3 months correlation between Slate and Blockmate is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Blockmate Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockmate Ventures and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Blockmate Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockmate Ventures has no effect on the direction of Slate Grocery i.e., Slate Grocery and Blockmate Ventures go up and down completely randomly.

Pair Corralation between Slate Grocery and Blockmate Ventures

Assuming the 90 days trading horizon Slate Grocery is expected to generate 7.68 times less return on investment than Blockmate Ventures. But when comparing it to its historical volatility, Slate Grocery REIT is 7.77 times less risky than Blockmate Ventures. It trades about 0.13 of its potential returns per unit of risk. Blockmate Ventures is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3.00  in Blockmate Ventures on September 18, 2024 and sell it today you would earn a total of  11.00  from holding Blockmate Ventures or generate 366.67% return on investment over 90 days.

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

Slate Grocery REIT  vs.  Blockmate Ventures

Slate Grocery REIT

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Slate Grocery REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Slate Grocery is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Blockmate Ventures

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blockmate Ventures are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Blockmate Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Slate Grocery and Blockmate Ventures

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

The idea behind Slate Grocery REIT and Blockmate Ventures 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.