Correlation Between Blur and Starknet
Can any of the company-specific risk be diversified away by investing in both Blur and Starknet 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 Blur and Starknet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blur and Starknet, you can compare the effects of market volatilities on Blur and Starknet 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 Blur with a short position of Starknet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blur and Starknet.
Diversification Opportunities for Blur and Starknet
No risk reduction
The 3 months correlation between Blur and Starknet is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Blur and Starknet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starknet and Blur 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 Blur are associated (or correlated) with Starknet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starknet has no effect on the direction of Blur i.e., Blur and Starknet go up and down completely randomly.
Pair Corralation between Blur and Starknet
Assuming the 90 days trading horizon Blur is expected to generate 1.04 times more return on investment than Starknet. However, Blur is 1.04 times more volatile than Starknet. It trades about -0.18 of its potential returns per unit of risk. Starknet is currently generating about -0.26 per unit of risk. If you would invest 24.00 in Blur on December 30, 2024 and sell it today you would lose (14.00) from holding Blur or give up 58.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Blur vs. Starknet
Performance |
Timeline |
Blur |
Starknet |
Blur and Starknet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blur and Starknet
The main advantage of trading using opposite Blur and Starknet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blur position performs unexpectedly, Starknet 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 Starknet will offset losses from the drop in Starknet's long position.The idea behind Blur and Starknet 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |