Correlation Between BlueFocus Communication and TS Communications
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By analyzing existing cross correlation between BlueFocus Communication Group and TS Communications Co, you can compare the effects of market volatilities on BlueFocus Communication and TS Communications 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 TS Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and TS Communications.
Diversification Opportunities for BlueFocus Communication and TS Communications
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BlueFocus and 300570 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and TS Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Communications 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 TS Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Communications has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and TS Communications go up and down completely randomly.
Pair Corralation between BlueFocus Communication and TS Communications
Assuming the 90 days trading horizon BlueFocus Communication is expected to generate 1.67 times less return on investment than TS Communications. But when comparing it to its historical volatility, BlueFocus Communication Group is 1.19 times less risky than TS Communications. It trades about 0.06 of its potential returns per unit of risk. TS Communications Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,379 in TS Communications Co on September 12, 2024 and sell it today you would earn a total of 5,186 from holding TS Communications Co or generate 376.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. TS Communications Co
Performance |
| Timeline |
| BlueFocus Communication |
| TS Communications |
BlueFocus Communication and TS Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and TS Communications
The main advantage of trading using opposite BlueFocus Communication and TS Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, TS Communications 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 TS Communications will offset losses from the drop in TS Communications' long position.The idea behind BlueFocus Communication Group and TS Communications Co 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.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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