Correlation Between Advance Auto and Blink Charging
Can any of the company-specific risk be diversified away by investing in both Advance Auto 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 Advance Auto and Blink Charging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance Auto Parts and Blink Charging Co, you can compare the effects of market volatilities on Advance Auto 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 Advance Auto with a short position of Blink Charging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Auto and Blink Charging.
Diversification Opportunities for Advance Auto and Blink Charging
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advance and Blink is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Advance Auto Parts and Blink Charging Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blink Charging and Advance Auto 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 Advance Auto Parts 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 Advance Auto i.e., Advance Auto and Blink Charging go up and down completely randomly.
Pair Corralation between Advance Auto and Blink Charging
Considering the 90-day investment horizon Advance Auto Parts is expected to under-perform the Blink Charging. But the stock apears to be less risky and, when comparing its historical volatility, Advance Auto Parts is 2.16 times less risky than Blink Charging. The stock trades about -0.06 of its potential returns per unit of risk. The Blink Charging Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Blink Charging Co on August 26, 2025 and sell it today you would earn a total of 30.00 from holding Blink Charging Co or generate 29.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advance Auto Parts vs. Blink Charging Co
Performance |
| Timeline |
| Advance Auto Parts |
| Blink Charging |
Advance Auto and Blink Charging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance Auto and Blink Charging
The main advantage of trading using opposite Advance Auto and Blink Charging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Auto 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.| Advance Auto vs. Ausnutria Dairy | Advance Auto vs. Arrow Electronics | Advance Auto vs. Shanghai Fudan Microelectronics | Advance Auto vs. Collins Foods Limited |
| Blink Charging vs. Paiute Oil Mining | Blink Charging vs. Technology Telecommunication Acquisition | Blink Charging vs. Spirent Communications plc | Blink Charging vs. Wireless Xcessories Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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