Correlation Between Blender Financial and MLRN Projects

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

Diversification Opportunities for Blender Financial and MLRN Projects

-0.77

Correlation Coefficient

Blender Financial  MLRN Projects

Pay attention - limited upside

The 3 months correlation between Blender and MLRN is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and MLRN Projects and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MLRN Projects 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 MLRN Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MLRN Projects has no effect on the direction of Blender Financial i.e., Blender Financial and MLRN Projects go up and down completely randomly.

Pair Corralation between Blender Financial and MLRN Projects

Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the MLRN Projects. In addition to that, Blender Financial is 1.87 times more volatile than MLRN Projects and. It trades about -0.09 of its total potential returns per unit of risk. MLRN Projects and is currently generating about 0.3 per unit of volatility. If you would invest  54,078  in MLRN Projects and on September 2, 2024 and sell it today you would earn a total of  16,142  from holding MLRN Projects and or generate 29.85% return on investment over 90 days.

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

Blender Financial Technologies  vs.  MLRN Projects and

Blender Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blender Financial Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

MLRN Projects

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MLRN Projects and are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MLRN Projects sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blender Financial and MLRN Projects

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

The idea behind Blender Financial Technologies and MLRN Projects and 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.