Correlation Between 159681 and Blue Sail
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By analyzing existing cross correlation between 159681 and Blue Sail Medical, you can compare the effects of market volatilities on 159681 and Blue Sail 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 159681 with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Blue Sail.
Diversification Opportunities for 159681 and Blue Sail
Very poor diversification
The 3 months correlation between 159681 and Blue is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical and 159681 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 159681 are associated (or correlated) with Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of 159681 i.e., 159681 and Blue Sail go up and down completely randomly.
Pair Corralation between 159681 and Blue Sail
Assuming the 90 days trading horizon 159681 is expected to generate 0.84 times more return on investment than Blue Sail. However, 159681 is 1.18 times less risky than Blue Sail. It trades about 0.01 of its potential returns per unit of risk. Blue Sail Medical is currently generating about -0.14 per unit of risk. If you would invest 97.00 in 159681 on September 28, 2024 and sell it today you would earn a total of 0.00 from holding 159681 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Blue Sail Medical
Performance |
| Timeline |
| 159681 |
| Blue Sail Medical |
159681 and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Blue Sail
The main advantage of trading using opposite 159681 and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Blue Sail 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 Sail will offset losses from the drop in Blue Sail's long position.The idea behind 159681 and Blue Sail Medical 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.| Blue Sail vs. Guangzhou Boji Medical | Blue Sail vs. Ningbo MedicalSystem Biotechnology | Blue Sail vs. Touchstone International Medical | Blue Sail vs. Easyhome New Retail |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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