Correlation Between Cango and Blink Charging
Can any of the company-specific risk be diversified away by investing in both Cango 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 Cango and Blink Charging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cango Inc and Blink Charging Co, you can compare the effects of market volatilities on Cango 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 Cango with a short position of Blink Charging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cango and Blink Charging.
Diversification Opportunities for Cango and Blink Charging
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cango and Blink is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cango Inc and Blink Charging Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blink Charging and Cango 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 Cango Inc 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 Cango i.e., Cango and Blink Charging go up and down completely randomly.
Pair Corralation between Cango and Blink Charging
Given the investment horizon of 90 days Cango Inc is expected to under-perform the Blink Charging. But the stock apears to be less risky and, when comparing its historical volatility, Cango Inc is 1.64 times less risky than Blink Charging. The stock trades about -0.18 of its potential returns per unit of risk. The Blink Charging Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Blink Charging Co on August 21, 2025 and sell it today you would earn a total of 47.00 from holding Blink Charging Co or generate 51.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cango Inc vs. Blink Charging Co
Performance |
| Timeline |
| Cango Inc |
| Blink Charging |
Cango and Blink Charging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cango and Blink Charging
The main advantage of trading using opposite Cango and Blink Charging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cango 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 Cango Inc 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.| Blink Charging vs. Resources Connection | Blink Charging vs. FuelCell Energy | Blink Charging vs. OneConstruction Group Limited | Blink Charging vs. Innovative Solutions and |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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