Correlation Between Moo Deng and BLZ

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

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

Diversification Opportunities for Moo Deng and BLZ

0.45

Correlation Coefficient

Moo Deng  BLZ

Very weak diversification

The 3 months correlation between Moo and BLZ is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Moo Deng and BLZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLZ and Moo Deng 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 Moo Deng 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 Moo Deng i.e., Moo Deng and BLZ go up and down completely randomly.

Pair Corralation between Moo Deng and BLZ

Assuming the 90 days trading horizon Moo Deng is expected to generate 5.61 times more return on investment than BLZ. However, Moo Deng is 5.61 times more volatile than BLZ. It trades about 0.18 of its potential returns per unit of risk. BLZ is currently generating about 0.06 per unit of risk. If you would invest  3.97  in Moo Deng on April 22, 2025 and sell it today you would earn a total of  15.03  from holding Moo Deng or generate 378.59% return on investment over 90 days.

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

Moo Deng  vs.  BLZ

Moo Deng

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moo Deng are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Moo Deng reported solid returns over the last few months and may actually be approaching a breakup point.

BLZ

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BLZ are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, BLZ exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moo Deng and BLZ

The main advantage of trading using opposite Moo Deng and BLZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moo Deng 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 Moo Deng 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.