Correlation Between Blaize Holdings, and Red Oak

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

By analyzing existing cross correlation between Blaize Holdings, Warrants and Red Oak Technology, you can compare the effects of market volatilities on Blaize Holdings, and Red Oak 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 Blaize Holdings, with a short position of Red Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blaize Holdings, and Red Oak.

Diversification Opportunities for Blaize Holdings, and Red Oak

0.45

Correlation Coefficient

Blaize Holdings,  Red Oak

Very weak diversification

The 3 months correlation between Blaize and Red is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Blaize Holdings, Warrants and Red Oak Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Oak Technology and Blaize Holdings, 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 Blaize Holdings, Warrants are associated (or correlated) with Red Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Oak Technology has no effect on the direction of Blaize Holdings, i.e., Blaize Holdings, and Red Oak go up and down completely randomly.

Pair Corralation between Blaize Holdings, and Red Oak

Assuming the 90 days horizon Blaize Holdings, Warrants is expected to under-perform the Red Oak. In addition to that, Blaize Holdings, is 4.75 times more volatile than Red Oak Technology. It trades about -0.04 of its total potential returns per unit of risk. Red Oak Technology is currently generating about 0.03 per unit of volatility. If you would invest  4,518  in Red Oak Technology on February 23, 2025 and sell it today you would earn a total of  93.00  from holding Red Oak Technology or generate 2.06% return on investment over 90 days.

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

Blaize Holdings, Warrants  vs.  Red Oak Technology

Blaize Holdings, Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blaize Holdings, Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in June 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Red Oak Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Red Oak Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Red Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blaize Holdings, and Red Oak

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

The idea behind Blaize Holdings, Warrants and Red Oak Technology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.