Correlation Between Blackline and A10 Network
Can any of the company-specific risk be diversified away by investing in both Blackline and A10 Network 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 Blackline and A10 Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackline and A10 Network, you can compare the effects of market volatilities on Blackline and A10 Network 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 Blackline with a short position of A10 Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackline and A10 Network.
Diversification Opportunities for Blackline and A10 Network
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackline and A10 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Blackline and A10 Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A10 Network and Blackline 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 Blackline are associated (or correlated) with A10 Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A10 Network has no effect on the direction of Blackline i.e., Blackline and A10 Network go up and down completely randomly.
Pair Corralation between Blackline and A10 Network
Allowing for the 90-day total investment horizon Blackline is expected to under-perform the A10 Network. But the stock apears to be less risky and, when comparing its historical volatility, Blackline is 1.35 times less risky than A10 Network. The stock trades about -0.02 of its potential returns per unit of risk. The A10 Network is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,345 in A10 Network on February 4, 2024 and sell it today you would earn a total of 170.00 from holding A10 Network or generate 12.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Blackline vs. A10 Network
Performance |
Timeline |
Blackline |
A10 Network |
Blackline and A10 Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackline and A10 Network
The main advantage of trading using opposite Blackline and A10 Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackline position performs unexpectedly, A10 Network 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 A10 Network will offset losses from the drop in A10 Network's long position.The idea behind Blackline and A10 Network 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.A10 Network vs. SentinelOne | A10 Network vs. BlackBerry | A10 Network vs. Global Blue Group | A10 Network vs. Aurora Mobile |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Transaction History View history of all your transactions and understand their impact on performance | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |