Correlation Between Cathedra Bitcoin and BLOK Technologies

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

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

Diversification Opportunities for Cathedra Bitcoin and BLOK Technologies

0.0

Correlation Coefficient

Cathedra Bitcoin  BLOK Technologies

Pay attention - limited upside

The 3 months correlation between Cathedra and BLOK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cathedra Bitcoin and BLOK Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLOK Technologies and Cathedra Bitcoin 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 Cathedra Bitcoin are associated (or correlated) with BLOK Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLOK Technologies has no effect on the direction of Cathedra Bitcoin i.e., Cathedra Bitcoin and BLOK Technologies go up and down completely randomly.

Pair Corralation between Cathedra Bitcoin and BLOK Technologies

If you would invest  0.00  in BLOK Technologies on October 10, 2024 and sell it today you would earn a total of  0.00  from holding BLOK Technologies or generate 0.0% return on investment over 90 days.

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

Cathedra Bitcoin  vs.  BLOK Technologies

Cathedra Bitcoin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cathedra Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BLOK Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BLOK Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, BLOK Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cathedra Bitcoin and BLOK Technologies

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

The idea behind Cathedra Bitcoin and BLOK Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.