Correlation Between Blockmate Ventures and Pinetree Capital

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

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

Diversification Opportunities for Blockmate Ventures and Pinetree Capital

-0.42

Correlation Coefficient

Blockmate Ventures  Pinetree Capital

Very good diversification

The 3 months correlation between Blockmate and Pinetree is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Blockmate Ventures and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree Capital and Blockmate Ventures 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 Blockmate Ventures are associated (or correlated) with Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of Blockmate Ventures i.e., Blockmate Ventures and Pinetree Capital go up and down completely randomly.

Pair Corralation between Blockmate Ventures and Pinetree Capital

Assuming the 90 days horizon Blockmate Ventures is expected to under-perform the Pinetree Capital. In addition to that, Blockmate Ventures is 2.82 times more volatile than Pinetree Capital. It trades about -0.01 of its total potential returns per unit of risk. Pinetree Capital is currently generating about 0.21 per unit of volatility. If you would invest  877.00  in Pinetree Capital on February 14, 2025 and sell it today you would earn a total of  556.00  from holding Pinetree Capital or generate 63.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Blockmate Ventures  vs.  Pinetree Capital

Blockmate Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blockmate Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pinetree Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pinetree Capital are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Pinetree Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blockmate Ventures and Pinetree Capital

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

The idea behind Blockmate Ventures and Pinetree Capital 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.