Correlation Between TRUE and BLZ

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

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

Diversification Opportunities for TRUE and BLZ

-0.13

Correlation Coefficient

TRUE  BLZ

Good diversification

The 3 months correlation between TRUE and BLZ is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TRUE and BLZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLZ and TRUE 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 TRUE 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 TRUE i.e., TRUE and BLZ go up and down completely randomly.

Pair Corralation between TRUE and BLZ

Assuming the 90 days trading horizon TRUE is expected to under-perform the BLZ. In addition to that, TRUE is 2.85 times more volatile than BLZ. It trades about -0.09 of its total potential returns per unit of risk. BLZ is currently generating about 0.05 per unit of volatility. If you would invest  3.67  in BLZ on April 25, 2025 and sell it today you would earn a total of  0.36  from holding BLZ or generate 9.81% return on investment over 90 days.

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

TRUE  vs.  BLZ

TRUE

Risk-Adjusted Performance

Very Weak

Over the last 90 days TRUE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for TRUE shareholders.

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 TRUE and BLZ

The main advantage of trading using opposite TRUE and BLZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRUE 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 TRUE 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.