Correlation Between Blender Financial and Infimer

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

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

Diversification Opportunities for Blender Financial and Infimer

0.36

Correlation Coefficient

Blender Financial  Infimer

Weak diversification

The 3 months correlation between Blender and Infimer is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Infimer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infimer and Blender Financial 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 Blender Financial Technologies are associated (or correlated) with Infimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infimer has no effect on the direction of Blender Financial i.e., Blender Financial and Infimer go up and down completely randomly.

Pair Corralation between Blender Financial and Infimer

Assuming the 90 days trading horizon Blender Financial is expected to generate 278.89 times less return on investment than Infimer. But when comparing it to its historical volatility, Blender Financial Technologies is 57.67 times less risky than Infimer. It trades about 0.03 of its potential returns per unit of risk. Infimer is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Infimer on December 24, 2024 and sell it today you would earn a total of  8,978  from holding Infimer or generate 37408.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.16%
Values	Daily Returns

Blender Financial Technologies  vs.  Infimer

Blender Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blender Financial Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Blender Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Infimer

Risk-Adjusted Performance

Good

Over the last 90 days Infimer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak technical and fundamental indicators, Infimer sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blender Financial and Infimer

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

The idea behind Blender Financial Technologies and Infimer 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.