Correlation Between Blender Financial and Spuntech

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

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

Diversification Opportunities for Blender Financial and Spuntech

0.52

Correlation Coefficient

Blender Financial  Spuntech

Very weak diversification

The 3 months correlation between Blender and Spuntech is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Spuntech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spuntech and Blender Financial 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 Blender Financial Technologies are associated (or correlated) with Spuntech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spuntech has no effect on the direction of Blender Financial i.e., Blender Financial and Spuntech go up and down completely randomly.

Pair Corralation between Blender Financial and Spuntech

Assuming the 90 days trading horizon Blender Financial Technologies is expected to generate 1.06 times more return on investment than Spuntech. However, Blender Financial is 1.06 times more volatile than Spuntech. It trades about -0.01 of its potential returns per unit of risk. Spuntech is currently generating about -0.05 per unit of risk. If you would invest  35,500  in Blender Financial Technologies on April 25, 2025 and sell it today you would lose (1,190) from holding Blender Financial Technologies or give up 3.35% of portfolio value over 90 days.

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

Blender Financial Technologies  vs.  Spuntech

Blender Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blender Financial Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Blender Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Spuntech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spuntech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Blender Financial and Spuntech

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

The idea behind Blender Financial Technologies and Spuntech 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.