Correlation Between Blink Charging and Sigma Lithium

Can any of the company-specific risk be diversified away by investing in both Blink Charging and Sigma Lithium 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 Sigma Lithium 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 Sigma Lithium Resources, you can compare the effects of market volatilities on Blink Charging and Sigma Lithium 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 Sigma Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and Sigma Lithium.

Diversification Opportunities for Blink Charging and Sigma Lithium

-0.05

Correlation Coefficient

Blink Charging  Sigma Lithium

Good diversification

The 3 months correlation between Blink and Sigma is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and Sigma Lithium Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigma Lithium Resources 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 Sigma Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigma Lithium Resources has no effect on the direction of Blink Charging i.e., Blink Charging and Sigma Lithium go up and down completely randomly.

Pair Corralation between Blink Charging and Sigma Lithium

Given the investment horizon of 90 days Blink Charging Co is expected to generate 1.07 times more return on investment than Sigma Lithium. However, Blink Charging is 1.07 times more volatile than Sigma Lithium Resources. It trades about 0.11 of its potential returns per unit of risk. Sigma Lithium Resources is currently generating about -0.07 per unit of risk. If you would invest  74.00  in Blink Charging Co on May 1, 2025 and sell it today you would earn a total of  25.30  from holding Blink Charging Co or generate 34.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Blink Charging Co  vs.  Sigma Lithium Resources

Blink Charging

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blink Charging Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Blink Charging disclosed solid returns over the last few months and may actually be approaching a breakup point.

Sigma Lithium Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sigma Lithium Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Blink Charging and Sigma Lithium

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

The idea behind Blink Charging Co and Sigma Lithium Resources 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 the Share Portfolio module to track or share privately all of your investments from the convenience of any device.