Correlation Between Blackline Safety and Agent Information

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

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

Diversification Opportunities for Blackline Safety and Agent Information

-0.38

Correlation Coefficient

Blackline Safety  Agent Information

Very good diversification

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

Pair Corralation between Blackline Safety and Agent Information

Assuming the 90 days horizon Blackline Safety Corp is expected to generate 0.48 times more return on investment than Agent Information. However, Blackline Safety Corp is 2.1 times less risky than Agent Information. It trades about 0.09 of its potential returns per unit of risk. Agent Information Software is currently generating about 0.02 per unit of risk. If you would invest  150.00  in Blackline Safety Corp on October 10, 2024 and sell it today you would earn a total of  333.00  from holding Blackline Safety Corp or generate 222.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blackline Safety Corp  vs.  Agent Information Software

Blackline Safety Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackline Safety Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Blackline Safety is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Agent Information

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agent Information Software are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Agent Information unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackline Safety and Agent Information

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

The idea behind Blackline Safety Corp and Agent Information Software 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.