Correlation Between Blender Financial and Multi Retail

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

Diversification Opportunities for Blender Financial and Multi Retail

0.76

Correlation Coefficient

Blender Financial  Multi Retail

Poor diversification

The 3 months correlation between Blender and Multi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Multi Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Retail Group 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 Multi Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Retail Group has no effect on the direction of Blender Financial i.e., Blender Financial and Multi Retail go up and down completely randomly.

Pair Corralation between Blender Financial and Multi Retail

Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the Multi Retail. In addition to that, Blender Financial is 1.22 times more volatile than Multi Retail Group. It trades about -0.01 of its total potential returns per unit of risk. Multi Retail Group is currently generating about 0.12 per unit of volatility. If you would invest  113,500  in Multi Retail Group on December 30, 2024 and sell it today you would earn a total of  15,800  from holding Multi Retail Group or generate 13.92% return on investment over 90 days.

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

Blender Financial Technologies  vs.  Multi Retail Group

Blender Financial

Risk-Adjusted Performance

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 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.

Multi Retail Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Retail Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Multi Retail sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blender Financial and Multi Retail

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

The idea behind Blender Financial Technologies and Multi Retail Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.