Correlation Between Industrial and Blue Sail
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By analyzing existing cross correlation between Industrial and Commercial and Blue Sail Medical, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Blue Sail.
Diversification Opportunities for Industrial and Blue Sail
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Blue is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Blue Sail go up and down completely randomly.
Pair Corralation between Industrial and Blue Sail
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.52 times more return on investment than Blue Sail. However, Industrial and Commercial is 1.92 times less risky than Blue Sail. It trades about 0.09 of its potential returns per unit of risk. Blue Sail Medical is currently generating about -0.03 per unit of risk. If you would invest 471.00 in Industrial and Commercial on September 1, 2024 and sell it today you would earn a total of 144.00 from holding Industrial and Commercial or generate 30.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Blue Sail Medical
Performance |
| Timeline |
| Industrial and Commercial |
| Blue Sail Medical |
Industrial and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Blue Sail
The main advantage of trading using opposite Industrial and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. Shenzhen Hifuture Electric | Blue Sail vs. Tianjin Realty Development | Blue Sail vs. Shenyang Huitian Thermal |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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