Correlation Between Blackline Safety and Bitech Technologies

Can any of the company-specific risk be diversified away by investing in both Blackline Safety and Bitech Technologies 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 Bitech Technologies 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 Bitech Technologies, you can compare the effects of market volatilities on Blackline Safety and Bitech Technologies 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 Bitech Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackline Safety and Bitech Technologies.

Diversification Opportunities for Blackline Safety and Bitech Technologies

-0.03

Correlation Coefficient

Blackline Safety  Bitech Technologies

Good diversification

The 3 months correlation between Blackline and Bitech is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Blackline Safety Corp and Bitech Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitech Technologies 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 Bitech Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitech Technologies has no effect on the direction of Blackline Safety i.e., Blackline Safety and Bitech Technologies go up and down completely randomly.

Pair Corralation between Blackline Safety and Bitech Technologies

Assuming the 90 days horizon Blackline Safety is expected to generate 20.75 times less return on investment than Bitech Technologies. But when comparing it to its historical volatility, Blackline Safety Corp is 5.36 times less risky than Bitech Technologies. It trades about 0.03 of its potential returns per unit of risk. Bitech Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  980.00  in Bitech Technologies on December 30, 2024 and sell it today you would earn a total of  147.00  from holding Bitech Technologies or generate 15.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Blackline Safety Corp  vs.  Bitech Technologies

Blackline Safety Corp

Risk-Adjusted Performance

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.

Bitech Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bitech Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Bitech Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackline Safety and Bitech Technologies

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

The idea behind Blackline Safety Corp and Bitech Technologies 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.