Correlation Between Blue Sail and Touchstone International
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By analyzing existing cross correlation between Blue Sail Medical and Touchstone International Medical, you can compare the effects of market volatilities on Blue Sail and Touchstone International 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 Blue Sail with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Touchstone International.
Diversification Opportunities for Blue Sail and Touchstone International
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Blue and Touchstone is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Blue Sail 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 Blue Sail Medical are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Blue Sail i.e., Blue Sail and Touchstone International go up and down completely randomly.
Pair Corralation between Blue Sail and Touchstone International
Assuming the 90 days trading horizon Blue Sail is expected to generate 1.39 times less return on investment than Touchstone International. But when comparing it to its historical volatility, Blue Sail Medical is 1.26 times less risky than Touchstone International. It trades about 0.16 of its potential returns per unit of risk. Touchstone International Medical is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,463 in Touchstone International Medical on August 25, 2024 and sell it today you would earn a total of 383.00 from holding Touchstone International Medical or generate 26.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Touchstone International Medic
Performance |
| Timeline |
| Blue Sail Medical |
| Touchstone International |
Blue Sail and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Touchstone International
The main advantage of trading using opposite Blue Sail and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Blue Sail vs. Bank of China | Blue Sail vs. Kweichow Moutai Co | Blue Sail vs. PetroChina Co Ltd | Blue Sail vs. Bank of Communications |
| Touchstone International vs. Bank of China | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. PetroChina Co Ltd | Touchstone International vs. Bank of Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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