Correlation Between BLZ and Akash Network

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

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

Diversification Opportunities for BLZ and Akash Network

0.71

Correlation Coefficient

BLZ  Akash Network

Poor diversification

The 3 months correlation between BLZ and Akash is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BLZ and Akash Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akash Network and BLZ 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 BLZ are associated (or correlated) with Akash Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akash Network has no effect on the direction of BLZ i.e., BLZ and Akash Network go up and down completely randomly.

Pair Corralation between BLZ and Akash Network

Assuming the 90 days trading horizon BLZ is expected to generate 1.22 times less return on investment than Akash Network. In addition to that, BLZ is 1.01 times more volatile than Akash Network. It trades about 0.12 of its total potential returns per unit of risk. Akash Network is currently generating about 0.14 per unit of volatility. If you would invest  247.00  in Akash Network on September 14, 2024 and sell it today you would earn a total of  150.00  from holding Akash Network or generate 60.73% return on investment over 90 days.

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

BLZ  vs.  Akash Network

BLZ

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BLZ are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, BLZ exhibited solid returns over the last few months and may actually be approaching a breakup point.

Akash Network

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akash Network are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Akash Network exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BLZ and Akash Network

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

The idea behind BLZ and Akash Network 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.