Correlation Between Blue Star and C2C Gold
Can any of the company-specific risk be diversified away by investing in both Blue Star and C2C 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 C2C 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 C2C Gold Corp, you can compare the effects of market volatilities on Blue Star and C2C 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 C2C Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and C2C Gold.
Diversification Opportunities for Blue Star and C2C Gold
Very good diversification
The 3 months correlation between Blue and C2C is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Gold and C2C Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C2C Gold Corp 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 C2C Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C2C Gold Corp has no effect on the direction of Blue Star i.e., Blue Star and C2C Gold go up and down completely randomly.
Pair Corralation between Blue Star and C2C Gold
Assuming the 90 days horizon Blue Star Gold is expected to generate 0.06 times more return on investment than C2C Gold. However, Blue Star Gold is 15.82 times less risky than C2C Gold. It trades about -0.21 of its potential returns per unit of risk. C2C Gold Corp is currently generating about -0.11 per unit of risk. If you would invest 3.58 in Blue Star Gold on August 29, 2024 and sell it today you would lose (0.09) from holding Blue Star Gold or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Star Gold vs. C2C Gold Corp
Performance |
| Timeline |
| Blue Star Gold |
| C2C Gold Corp |
Blue Star and C2C Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and C2C Gold
The main advantage of trading using opposite Blue Star and C2C Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, C2C 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 C2C Gold will offset losses from the drop in C2C 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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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