Correlation Between CTR Investments and Blockchain Industries

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

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

Diversification Opportunities for CTR Investments and Blockchain Industries

0.14

Correlation Coefficient

CTR Investments  Blockchain Industries

Average diversification

The 3 months correlation between CTR and Blockchain is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CTR Investments Consulting and Blockchain Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Industries and CTR Investments 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 CTR Investments Consulting are associated (or correlated) with Blockchain Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Industries has no effect on the direction of CTR Investments i.e., CTR Investments and Blockchain Industries go up and down completely randomly.

Pair Corralation between CTR Investments and Blockchain Industries

Given the investment horizon of 90 days CTR Investments Consulting is expected to generate 1.27 times more return on investment than Blockchain Industries. However, CTR Investments is 1.27 times more volatile than Blockchain Industries. It trades about 0.07 of its potential returns per unit of risk. Blockchain Industries is currently generating about 0.06 per unit of risk. If you would invest  0.08  in CTR Investments Consulting on September 4, 2024 and sell it today you would lose (0.05) from holding CTR Investments Consulting or give up 62.5% of portfolio value over 90 days.

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

CTR Investments Consulting  vs.  Blockchain Industries

CTR Investments Cons

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTR Investments Consulting has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Blockchain Industries

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blockchain Industries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal forward indicators, Blockchain Industries demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CTR Investments and Blockchain Industries

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

The idea behind CTR Investments Consulting and Blockchain Industries 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.