Correlation Between Advance United and Blue Star
Can any of the company-specific risk be diversified away by investing in both Advance United and Blue Star at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Advance United and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance United Holdings and Blue Star Gold, you can compare the effects of market volatilities on Advance United and Blue Star 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 Advance United with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance United and Blue Star.
Diversification Opportunities for Advance United and Blue Star
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advance and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance United Holdings and Blue Star Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Gold and Advance United 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 Advance United Holdings are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Gold has no effect on the direction of Advance United i.e., Advance United and Blue Star go up and down completely randomly.
Pair Corralation between Advance United and Blue Star
If you would invest 3.25 in Blue Star Gold on November 27, 2024 and sell it today you would earn a total of 1.72 from holding Blue Star Gold or generate 52.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advance United Holdings vs. Blue Star Gold
Performance |
| Timeline |
| Advance United Holdings |
| Blue Star Gold |
Advance United and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance United and Blue Star
The main advantage of trading using opposite Advance United and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance United position performs unexpectedly, Blue Star 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 Star will offset losses from the drop in Blue Star's long position.| Advance United vs. Argo Gold | Advance United vs. Blue Star Gold | Advance United vs. Angkor Resources Corp | Advance United vs. Advance Gold Corp |
| Blue Star vs. Argo Gold | Blue Star vs. Minnova Corp | Blue Star vs. Angkor Resources Corp | Blue Star vs. Advance United Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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