Correlation Between Blue Star and Abcourt Mines
Can any of the company-specific risk be diversified away by investing in both Blue Star and Abcourt Mines 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 Blue Star and Abcourt Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Gold and Abcourt Mines, you can compare the effects of market volatilities on Blue Star and Abcourt Mines 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 Blue Star with a short position of Abcourt Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Abcourt Mines.
Diversification Opportunities for Blue Star and Abcourt Mines
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Abcourt is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Gold and Abcourt Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcourt Mines and Blue Star 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 Blue Star Gold are associated (or correlated) with Abcourt Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcourt Mines has no effect on the direction of Blue Star i.e., Blue Star and Abcourt Mines go up and down completely randomly.
Pair Corralation between Blue Star and Abcourt Mines
Assuming the 90 days horizon Blue Star Gold is expected to under-perform the Abcourt Mines. But the otc stock apears to be less risky and, when comparing its historical volatility, Blue Star Gold is 1.62 times less risky than Abcourt Mines. The otc stock trades about -0.02 of its potential returns per unit of risk. The Abcourt Mines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Abcourt Mines on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Abcourt Mines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Blue Star Gold vs. Abcourt Mines
Performance |
| Timeline |
| Blue Star Gold |
| Abcourt Mines |
Blue Star and Abcourt Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Abcourt Mines
The main advantage of trading using opposite Blue Star and Abcourt Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Abcourt Mines 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 Abcourt Mines will offset losses from the drop in Abcourt Mines' long position.| Blue Star vs. Harmony Gold Mining | Blue Star vs. SPACE | Blue Star vs. T Rowe Price | Blue Star vs. Ampleforth |
| Abcourt Mines vs. Harmony Gold Mining | Abcourt Mines vs. SPACE | Abcourt Mines vs. T Rowe Price | Abcourt Mines vs. Ampleforth |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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