Correlation Between BLZ and Mantle

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

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

Diversification Opportunities for BLZ and Mantle

0.64

Correlation Coefficient

BLZ  Mantle

Poor diversification

The 3 months correlation between BLZ and Mantle is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding BLZ and Mantle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mantle 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 Mantle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mantle has no effect on the direction of BLZ i.e., BLZ and Mantle go up and down completely randomly.

Pair Corralation between BLZ and Mantle

Assuming the 90 days trading horizon BLZ is expected to generate 3.05 times more return on investment than Mantle. However, BLZ is 3.05 times more volatile than Mantle. It trades about 0.0 of its potential returns per unit of risk. Mantle is currently generating about -0.13 per unit of risk. If you would invest  5.40  in BLZ on December 30, 2024 and sell it today you would lose (2.10) from holding BLZ or give up 38.89% of portfolio value over 90 days.

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

BLZ  vs.  Mantle

BLZ

Risk-Adjusted Performance

Very Weak

Over the last 90 days BLZ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BLZ is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Mantle

Risk-Adjusted Performance

Very Weak

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

Pair Trading with BLZ and Mantle

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

The idea behind BLZ and Mantle 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.