Correlation Between Exodus Movement, and Block

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

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

Diversification Opportunities for Exodus Movement, and Block

0.66

Correlation Coefficient

Exodus Movement,  Block

Poor diversification

The 3 months correlation between Exodus and Block is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Exodus Movement, and Block Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Block Inc and Exodus Movement, 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 Exodus Movement, are associated (or correlated) with Block. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Block Inc has no effect on the direction of Exodus Movement, i.e., Exodus Movement, and Block go up and down completely randomly.

Pair Corralation between Exodus Movement, and Block

Given the investment horizon of 90 days Exodus Movement, is expected to generate 4.58 times more return on investment than Block. However, Exodus Movement, is 4.58 times more volatile than Block Inc. It trades about 0.13 of its potential returns per unit of risk. Block Inc is currently generating about -0.05 per unit of risk. If you would invest  2,688  in Exodus Movement, on October 6, 2024 and sell it today you would earn a total of  583.00  from holding Exodus Movement, or generate 21.69% return on investment over 90 days.

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

Exodus Movement,  vs.  Block Inc

Exodus Movement,

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exodus Movement, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Exodus Movement, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Block Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Block Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Block reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exodus Movement, and Block

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

The idea behind Exodus Movement, and Block Inc 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.