Correlation Between Alibaba Group and BLAIR CORP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Alibaba Group and BLAIR CORP 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 Alibaba Group and BLAIR CORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alibaba Group Holding and BLAIR CORP, you can compare the effects of market volatilities on Alibaba Group and BLAIR CORP 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 Alibaba Group with a short position of BLAIR CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and BLAIR CORP.

Diversification Opportunities for Alibaba Group and BLAIR CORP

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Alibaba and BLAIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and BLAIR CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLAIR CORP and Alibaba Group 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 Alibaba Group Holding are associated (or correlated) with BLAIR CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLAIR CORP has no effect on the direction of Alibaba Group i.e., Alibaba Group and BLAIR CORP go up and down completely randomly.

Pair Corralation between Alibaba Group and BLAIR CORP

If you would invest  9,321  in Alibaba Group Holding on April 4, 2022 and sell it today you would earn a total of  2,279  from holding Alibaba Group Holding or generate 24.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Alibaba Group Holding  vs.  BLAIR CORP

 Performance (%) 
      Timeline 
Alibaba Group Holding 
Alibaba Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Alibaba Group Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Alibaba Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Alibaba Price Channel

BLAIR CORP 
BLAIR Performance
0 of 100
Over the last 90 days BLAIR CORP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, BLAIR CORP is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Alibaba Group and BLAIR CORP Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alibaba Group and BLAIR CORP

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

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go