Correlation Between CAZ Public and Bless Asset

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

By analyzing existing cross correlation between CAZ Public and Bless Asset Group, you can compare the effects of market volatilities on CAZ Public and Bless Asset 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 CAZ Public with a short position of Bless Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAZ Public and Bless Asset.

Diversification Opportunities for CAZ Public and Bless Asset

-0.15

Correlation Coefficient

CAZ Public  Bless Asset

Good diversification

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

Pair Corralation between CAZ Public and Bless Asset

Assuming the 90 days trading horizon CAZ Public is expected to generate 0.76 times more return on investment than Bless Asset. However, CAZ Public is 1.31 times less risky than Bless Asset. It trades about 0.17 of its potential returns per unit of risk. Bless Asset Group is currently generating about 0.08 per unit of risk. If you would invest  175.00  in CAZ Public on April 24, 2025 and sell it today you would earn a total of  81.00  from holding CAZ Public or generate 46.29% return on investment over 90 days.

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

CAZ Public  vs.  Bless Asset Group

CAZ Public

Risk-Adjusted Performance

Good

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

Bless Asset Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bless Asset Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Bless Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CAZ Public and Bless Asset

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

The idea behind CAZ Public and Bless Asset Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.