Correlation Between Acorn Energy and Blink Charging

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

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

Diversification Opportunities for Acorn Energy and Blink Charging

-0.06

Correlation Coefficient

Acorn Energy  Blink Charging

Good diversification

The 3 months correlation between Acorn and Blink is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Acorn Energy and Blink Charging Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blink Charging and Acorn Energy 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 Acorn Energy are associated (or correlated) with Blink Charging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blink Charging has no effect on the direction of Acorn Energy i.e., Acorn Energy and Blink Charging go up and down completely randomly.

Pair Corralation between Acorn Energy and Blink Charging

If you would invest  585.00  in Acorn Energy on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Acorn Energy or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Acorn Energy  vs.  Blink Charging Co

Acorn Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acorn Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Blink Charging

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blink Charging Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Blink Charging may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Acorn Energy and Blink Charging

The main advantage of trading using opposite Acorn Energy and Blink Charging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn Energy position performs unexpectedly, Blink Charging 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 Blink Charging will offset losses from the drop in Blink Charging's long position.

The idea behind Acorn Energy and Blink Charging Co 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.