Correlation Between FTC and BLZ

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Can any of the company-specific risk be diversified away by investing in both FTC and BLZ 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 FTC and BLZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTC and BLZ, you can compare the effects of market volatilities on FTC and BLZ 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 FTC with a short position of BLZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTC and BLZ.

Diversification Opportunities for FTC and BLZ

-0.01
  Correlation Coefficient
 FTC
 BLZ

Good diversification

The 3 months correlation between FTC and BLZ is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FTC and BLZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLZ and FTC 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 FTC are associated (or correlated) with BLZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLZ has no effect on the direction of FTC i.e., FTC and BLZ go up and down completely randomly.

Pair Corralation between FTC and BLZ

Assuming the 90 days trading horizon FTC is expected to generate 0.43 times more return on investment than BLZ. However, FTC is 2.32 times less risky than BLZ. It trades about 0.19 of its potential returns per unit of risk. BLZ is currently generating about 0.04 per unit of risk. If you would invest  0.28  in FTC on April 23, 2025 and sell it today you would earn a total of  0.07  from holding FTC or generate 23.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

FTC  vs.  BLZ

 Performance 
       Timeline  
FTC 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in FTC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, FTC exhibited solid returns over the last few months and may actually be approaching a breakup point.
BLZ 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BLZ are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, BLZ may actually be approaching a critical reversion point that can send shares even higher in August 2025.

FTC and BLZ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTC and BLZ

The main advantage of trading using opposite FTC and BLZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTC position performs unexpectedly, BLZ 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 BLZ will offset losses from the drop in BLZ's long position.
The idea behind FTC and BLZ 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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