Correlation Between Sarine Technologies and Blender Financial

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

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

Diversification Opportunities for Sarine Technologies and Blender Financial

0.15

Correlation Coefficient

Sarine Technologies  Blender Financial

Average diversification

The 3 months correlation between Sarine and Blender is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sarine Technologies and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Sarine Technologies 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 Sarine Technologies are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Sarine Technologies i.e., Sarine Technologies and Blender Financial go up and down completely randomly.

Pair Corralation between Sarine Technologies and Blender Financial

Assuming the 90 days trading horizon Sarine Technologies is expected to under-perform the Blender Financial. But the stock apears to be less risky and, when comparing its historical volatility, Sarine Technologies is 1.76 times less risky than Blender Financial. The stock trades about -0.07 of its potential returns per unit of risk. The Blender Financial Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  38,030  in Blender Financial Technologies on October 25, 2024 and sell it today you would earn a total of  3,410  from holding Blender Financial Technologies or generate 8.97% return on investment over 90 days.

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

Sarine Technologies  vs.  Blender Financial Technologies

Sarine Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sarine Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Blender Financial

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blender Financial Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Blender Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sarine Technologies and Blender Financial

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

The idea behind Sarine Technologies and Blender Financial 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.