Correlation Between Blackstar Enterprise and Woodbrook Group

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

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

Diversification Opportunities for Blackstar Enterprise and Woodbrook Group

-0.19

Correlation Coefficient

Blackstar Enterprise  Woodbrook Group

Good diversification

The 3 months correlation between Blackstar and Woodbrook is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Blackstar Enterprise Group and Woodbrook Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodbrook Group Holdings and Blackstar Enterprise 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 Blackstar Enterprise Group are associated (or correlated) with Woodbrook Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodbrook Group Holdings has no effect on the direction of Blackstar Enterprise i.e., Blackstar Enterprise and Woodbrook Group go up and down completely randomly.

Pair Corralation between Blackstar Enterprise and Woodbrook Group

Given the investment horizon of 90 days Blackstar Enterprise Group is expected to under-perform the Woodbrook Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Blackstar Enterprise Group is 7.0 times less risky than Woodbrook Group. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Woodbrook Group Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6.10  in Woodbrook Group Holdings on September 5, 2024 and sell it today you would lose (0.98) from holding Woodbrook Group Holdings or give up 16.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Blackstar Enterprise Group  vs.  Woodbrook Group Holdings

Blackstar Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackstar Enterprise Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Woodbrook Group Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Woodbrook Group Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Woodbrook Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackstar Enterprise and Woodbrook Group

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

The idea behind Blackstar Enterprise Group and Woodbrook Group Holdings 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.