Correlation Between Blue Star and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Blue Star and Antilles Gold 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 Antilles Gold 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 Antilles Gold Limited, you can compare the effects of market volatilities on Blue Star and Antilles Gold 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 Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Antilles Gold.
Diversification Opportunities for Blue Star and Antilles Gold
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and Antilles is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Gold and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited 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 Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Blue Star i.e., Blue Star and Antilles Gold go up and down completely randomly.
Pair Corralation between Blue Star and Antilles Gold
Assuming the 90 days horizon Blue Star Gold is expected to under-perform the Antilles Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Blue Star Gold is 33.21 times less risky than Antilles Gold. The otc stock trades about -0.21 of its potential returns per unit of risk. The Antilles Gold Limited is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 0.22 in Antilles Gold Limited on August 29, 2024 and sell it today you would earn a total of 0.38 from holding Antilles Gold Limited or generate 172.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Star Gold vs. Antilles Gold Limited
Performance |
| Timeline |
| Blue Star Gold |
| Antilles Gold Limited |
Blue Star and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Antilles Gold
The main advantage of trading using opposite Blue Star and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Antilles Gold 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Blue Star vs. Argo Gold | Blue Star vs. Minnova Corp | Blue Star vs. Angkor Resources Corp | Blue Star vs. Advance United Holdings |
| Antilles Gold vs. Vertiv Holdings Co | Antilles Gold vs. Nasdaq Inc | Antilles Gold vs. McDonalds | Antilles Gold vs. Walmart |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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