Correlation Between BloomZ Ordinary and Radcom

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

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

Diversification Opportunities for BloomZ Ordinary and Radcom

0.13

Correlation Coefficient

BloomZ Ordinary  Radcom

Average diversification

The 3 months correlation between BloomZ and Radcom is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BloomZ Ordinary Shares and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom and BloomZ Ordinary 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 BloomZ Ordinary Shares are associated (or correlated) with Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of BloomZ Ordinary i.e., BloomZ Ordinary and Radcom go up and down completely randomly.

Pair Corralation between BloomZ Ordinary and Radcom

Given the investment horizon of 90 days BloomZ Ordinary Shares is expected to generate 2.99 times more return on investment than Radcom. However, BloomZ Ordinary is 2.99 times more volatile than Radcom. It trades about 0.11 of its potential returns per unit of risk. Radcom is currently generating about 0.02 per unit of risk. If you would invest  15.00  in BloomZ Ordinary Shares on July 6, 2025 and sell it today you would earn a total of  8.00  from holding BloomZ Ordinary Shares or generate 53.33% return on investment over 90 days.

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

BloomZ Ordinary Shares  vs.  Radcom

BloomZ Ordinary Shares

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BloomZ Ordinary Shares are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain primary indicators, BloomZ Ordinary showed solid returns over the last few months and may actually be approaching a breakup point.

Radcom

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Radcom is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BloomZ Ordinary and Radcom

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

The idea behind BloomZ Ordinary Shares and Radcom 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..