Correlation Between Cadence Design and Blockchain Moon

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

By analyzing existing cross correlation between Cadence Design Systems and Blockchain Moon Acquisition, you can compare the effects of market volatilities on Cadence Design and Blockchain Moon 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 Cadence Design with a short position of Blockchain Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadence Design and Blockchain Moon.

Diversification Opportunities for Cadence Design and Blockchain Moon

-0.25

Correlation Coefficient

Cadence Design  Blockchain Moon

Very good diversification

The 3 months correlation between Cadence and Blockchain is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cadence Design Systems and Blockchain Moon Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Moon Acqu and Cadence Design 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 Cadence Design Systems are associated (or correlated) with Blockchain Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Moon Acqu has no effect on the direction of Cadence Design i.e., Cadence Design and Blockchain Moon go up and down completely randomly.

Pair Corralation between Cadence Design and Blockchain Moon

If you would invest  0.20  in Blockchain Moon Acquisition on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Blockchain Moon Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Cadence Design Systems  vs.  Blockchain Moon Acquisition

Cadence Design Systems

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cadence Design Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Cadence Design may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Blockchain Moon Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blockchain Moon Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Blockchain Moon is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cadence Design and Blockchain Moon

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

The idea behind Cadence Design Systems and Blockchain Moon Acquisition 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.