Correlation Between Blue Sail and Dazhong Transportation
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By analyzing existing cross correlation between Blue Sail Medical and Dazhong Transportation Group, you can compare the effects of market volatilities on Blue Sail and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Dazhong Transportation.
Diversification Opportunities for Blue Sail and Dazhong Transportation
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blue and Dazhong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Blue Sail i.e., Blue Sail and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Blue Sail and Dazhong Transportation
Assuming the 90 days trading horizon Blue Sail Medical is expected to generate 0.94 times more return on investment than Dazhong Transportation. However, Blue Sail Medical is 1.07 times less risky than Dazhong Transportation. It trades about 0.09 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.01 per unit of risk. If you would invest 562.00 in Blue Sail Medical on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Blue Sail Medical or generate 3.74% 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. Dazhong Transportation Group
Performance |
| Timeline |
| Blue Sail Medical |
| Dazhong Transportation |
Blue Sail and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Dazhong Transportation
The main advantage of trading using opposite Blue Sail and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Blue Sail vs. Cultural Investment Holdings | Blue Sail vs. Gome Telecom Equipment | Blue Sail vs. Holitech Technology Co | Blue Sail vs. Zotye Automobile Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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