Correlation Between CyberAgent and BLOCKCHAIN GRP

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

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

Diversification Opportunities for CyberAgent and BLOCKCHAIN GRP

0.88

Correlation Coefficient

CyberAgent  BLOCKCHAIN GRP

Very poor diversification

The 3 months correlation between CyberAgent and BLOCKCHAIN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CyberAgent and BLOCKCHAIN GRP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLOCKCHAIN GRP SA and CyberAgent 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 CyberAgent are associated (or correlated) with BLOCKCHAIN GRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLOCKCHAIN GRP SA has no effect on the direction of CyberAgent i.e., CyberAgent and BLOCKCHAIN GRP go up and down completely randomly.

Pair Corralation between CyberAgent and BLOCKCHAIN GRP

Assuming the 90 days horizon CyberAgent is expected to generate 6.1 times less return on investment than BLOCKCHAIN GRP. But when comparing it to its historical volatility, CyberAgent is 3.46 times less risky than BLOCKCHAIN GRP. It trades about 0.16 of its potential returns per unit of risk. BLOCKCHAIN GRP SA is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  80.00  in BLOCKCHAIN GRP SA on April 25, 2025 and sell it today you would earn a total of  224.00  from holding BLOCKCHAIN GRP SA or generate 280.0% return on investment over 90 days.

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

CyberAgent  vs.  BLOCKCHAIN GRP SA

CyberAgent

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CyberAgent are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CyberAgent reported solid returns over the last few months and may actually be approaching a breakup point.

BLOCKCHAIN GRP SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BLOCKCHAIN GRP SA are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BLOCKCHAIN GRP reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CyberAgent and BLOCKCHAIN GRP

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

The idea behind CyberAgent and BLOCKCHAIN GRP SA 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 CEOs Directory module to screen CEOs from public companies around the world.