Correlation Between Reservoir Media and Bolt Projects

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

By analyzing existing cross correlation between Reservoir Media and Bolt Projects Holdings,, you can compare the effects of market volatilities on Reservoir Media and Bolt Projects 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 Reservoir Media with a short position of Bolt Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reservoir Media and Bolt Projects.

Diversification Opportunities for Reservoir Media and Bolt Projects

-0.47

Correlation Coefficient

Reservoir Media  Bolt Projects

Very good diversification

The 3 months correlation between Reservoir and Bolt is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Reservoir Media and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, and Reservoir Media 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 Reservoir Media are associated (or correlated) with Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Reservoir Media i.e., Reservoir Media and Bolt Projects go up and down completely randomly.

Pair Corralation between Reservoir Media and Bolt Projects

Given the investment horizon of 90 days Reservoir Media is expected to under-perform the Bolt Projects. But the stock apears to be less risky and, when comparing its historical volatility, Reservoir Media is 17.92 times less risky than Bolt Projects. The stock trades about -0.17 of its potential returns per unit of risk. The Bolt Projects Holdings, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  4.00  in Bolt Projects Holdings, on December 21, 2024 and sell it today you would lose (0.01) from holding Bolt Projects Holdings, or give up 0.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	61.02%
Values	Daily Returns

Reservoir Media  vs.  Bolt Projects Holdings,

Reservoir Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reservoir Media has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Bolt Projects Holdings,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bolt Projects Holdings, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward-looking signals, Bolt Projects showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Reservoir Media and Bolt Projects

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

The idea behind Reservoir Media and Bolt Projects Holdings, 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.