Correlation Between Epoxy Base and Blue Sail
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By analyzing existing cross correlation between Epoxy Base Electronic and Blue Sail Medical, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Blue Sail.
Diversification Opportunities for Epoxy Base and Blue Sail
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Epoxy and Blue is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic 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 Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Blue Sail go up and down completely randomly.
Pair Corralation between Epoxy Base and Blue Sail
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 1.96 times more return on investment than Blue Sail. However, Epoxy Base is 1.96 times more volatile than Blue Sail Medical. It trades about 0.11 of its potential returns per unit of risk. Blue Sail Medical is currently generating about 0.07 per unit of risk. If you would invest 528.00 in Epoxy Base Electronic on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Epoxy Base Electronic or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Blue Sail Medical
Performance |
| Timeline |
| Epoxy Base Electronic |
| Blue Sail Medical |
Epoxy Base and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Blue Sail
The main advantage of trading using opposite Epoxy Base and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Rongsheng Petrochemical Co | Epoxy Base vs. Hoshine Silicon Ind |
| Blue Sail vs. PetroChina Co Ltd | Blue Sail vs. China Mobile Limited | Blue Sail vs. Ping An Insurance | Blue Sail vs. China Petroleum Chemical |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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