Correlation Between BlueFocus Communication and Digital China
Specify exactly 2 symbols:
By analyzing existing cross correlation between BlueFocus Communication Group and Digital China Information, you can compare the effects of market volatilities on BlueFocus Communication and Digital China 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 BlueFocus Communication with a short position of Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Digital China.
Diversification Opportunities for BlueFocus Communication and Digital China
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BlueFocus and Digital is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information and BlueFocus Communication 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 BlueFocus Communication Group are associated (or correlated) with Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and Digital China go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Digital China
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 2.08 times more return on investment than Digital China. However, BlueFocus Communication is 2.08 times more volatile than Digital China Information. It trades about 0.16 of its potential returns per unit of risk. Digital China Information is currently generating about 0.08 per unit of risk. If you would invest 954.00 in BlueFocus Communication Group on September 13, 2024 and sell it today you would earn a total of 199.00 from holding BlueFocus Communication Group or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Digital China Information
Performance |
| Timeline |
| BlueFocus Communication |
| Digital China Information |
BlueFocus Communication and Digital China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Digital China
The main advantage of trading using opposite BlueFocus Communication and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.| BlueFocus Communication vs. BYD Co Ltd | BlueFocus Communication vs. China Mobile Limited | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. Industrial and Commercial |
| Digital China vs. China Petroleum Chemical | Digital China vs. PetroChina Co Ltd | Digital China vs. China State Construction | Digital China vs. China Railway Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |