Correlation Between Blink Charging and Arbor Realty

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Can any of the company-specific risk be diversified away by investing in both Blink Charging and Arbor Realty 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 Blink Charging and Arbor Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blink Charging Co and Arbor Realty Trust, you can compare the effects of market volatilities on Blink Charging and Arbor Realty 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 Blink Charging with a short position of Arbor Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and Arbor Realty.

Diversification Opportunities for Blink Charging and Arbor Realty

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Blink and Arbor is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and Arbor Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Realty Trust and Blink Charging 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 Blink Charging Co are associated (or correlated) with Arbor Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Realty Trust has no effect on the direction of Blink Charging i.e., Blink Charging and Arbor Realty go up and down completely randomly.

Pair Corralation between Blink Charging and Arbor Realty

Given the investment horizon of 90 days Blink Charging Co is expected to generate 3.04 times more return on investment than Arbor Realty. However, Blink Charging is 3.04 times more volatile than Arbor Realty Trust. It trades about 0.09 of its potential returns per unit of risk. Arbor Realty Trust is currently generating about 0.15 per unit of risk. If you would invest  1,337  in Blink Charging Co on September 5, 2022 and sell it today you would earn a total of  105.00  from holding Blink Charging Co or generate 7.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Blink Charging Co  vs.  Arbor Realty Trust

 Performance (%) 
       Timeline  
Blink Charging 
Blink Performance
0 of 100
Over the last 90 days Blink Charging Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2023. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Blink Price Channel

Arbor Realty Trust 
Arbor Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Arbor Realty Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Arbor Realty may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Arbor Price Channel

Blink Charging and Arbor Realty Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blink Charging and Arbor Realty

The main advantage of trading using opposite Blink Charging and Arbor Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blink Charging position performs unexpectedly, Arbor Realty 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 Arbor Realty will offset losses from the drop in Arbor Realty's long position.
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The idea behind Blink Charging Co and Arbor Realty Trust 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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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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