Correlation Between BlueFocus Communication and Industrial
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By analyzing existing cross correlation between BlueFocus Communication Group and Industrial and Commercial, you can compare the effects of market volatilities on BlueFocus Communication and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Industrial.
Diversification Opportunities for BlueFocus Communication and Industrial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BlueFocus and Industrial is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and Industrial go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Industrial
Assuming the 90 days trading horizon BlueFocus Communication is expected to generate 1.02 times less return on investment than Industrial. In addition to that, BlueFocus Communication is 3.21 times more volatile than Industrial and Commercial. It trades about 0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.07 per unit of volatility. If you would invest 477.00 in Industrial and Commercial on August 31, 2024 and sell it today you would earn a total of 138.00 from holding Industrial and Commercial or generate 28.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Industrial and Commercial
Performance |
| Timeline |
| BlueFocus Communication |
| Industrial and Commercial |
BlueFocus Communication and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Industrial
The main advantage of trading using opposite BlueFocus Communication and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| BlueFocus Communication vs. BYD Co Ltd | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. Industrial and Commercial | BlueFocus Communication vs. China State Construction |
| Industrial vs. China Publishing Media | Industrial vs. Xiandai Investment Co | Industrial vs. Lander Sports Development | Industrial vs. Zhejiang Construction Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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