Correlation Between Endo International and Blue Star
Can any of the company-specific risk be diversified away by investing in both Endo International and Blue Star 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 Endo International and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endo International PLC and Blue Star Capital, you can compare the effects of market volatilities on Endo International and Blue Star 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 Endo International with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endo International and Blue Star.
Diversification Opportunities for Endo International and Blue Star
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Endo and Blue is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Endo International PLC and Blue Star Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Capital and Endo International 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 Endo International PLC are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Capital has no effect on the direction of Endo International i.e., Endo International and Blue Star go up and down completely randomly.
Pair Corralation between Endo International and Blue Star
Assuming the 90 days trading horizon Endo International PLC is expected to generate 10.07 times more return on investment than Blue Star. However, Endo International is 10.07 times more volatile than Blue Star Capital. It trades about 0.08 of its potential returns per unit of risk. Blue Star Capital is currently generating about -0.03 per unit of risk. If you would invest 7.12 in Endo International PLC on September 19, 2024 and sell it today you would earn a total of 61,516 from holding Endo International PLC or generate 863987.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.8% |
| Values | Daily Returns |
Endo International PLC vs. Blue Star Capital
Performance |
| Timeline |
| Endo International PLC |
| Blue Star Capital |
Endo International and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endo International and Blue Star
The main advantage of trading using opposite Endo International and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endo International position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| Endo International vs. Zoom Video Communications | Endo International vs. Enbridge | Endo International vs. DS Smith PLC | Endo International vs. Rolls Royce Holdings PLC |
| Blue Star vs. Catalyst Media Group | Blue Star vs. CATLIN GROUP | Blue Star vs. Tamburi Investment Partners | Blue Star vs. Magnora ASA |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |