Correlation Between Blink Charging and AYRO

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

By analyzing existing cross correlation between Blink Charging Co and AYRO Inc, you can compare the effects of market volatilities on Blink Charging and AYRO 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 Blink Charging with a short position of AYRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and AYRO.

Diversification Opportunities for Blink Charging and AYRO

0.05

Correlation Coefficient

Blink Charging  AYRO

Significant diversification

The 3 months correlation between Blink and AYRO is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and AYRO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYRO Inc and Blink Charging 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 Blink Charging Co are associated (or correlated) with AYRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYRO Inc has no effect on the direction of Blink Charging i.e., Blink Charging and AYRO go up and down completely randomly.

Pair Corralation between Blink Charging and AYRO

Given the investment horizon of 90 days Blink Charging Co is expected to under-perform the AYRO. In addition to that, Blink Charging is 1.03 times more volatile than AYRO Inc. It trades about -0.01 of its total potential returns per unit of risk. AYRO Inc is currently generating about 0.02 per unit of volatility. If you would invest  82.00  in AYRO Inc on September 15, 2024 and sell it today you would lose (1.00) from holding AYRO Inc or give up 1.22% of portfolio value over 90 days.

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

Blink Charging Co  vs.  AYRO Inc

Blink Charging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blink Charging Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Blink Charging is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

AYRO Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AYRO Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, AYRO is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Blink Charging and AYRO

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

The idea behind Blink Charging Co and AYRO Inc 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.