Correlation Between Blue Star and Dacian Gold
Can any of the company-specific risk be diversified away by investing in both Blue Star and Dacian 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 Dacian 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 Dacian Gold Limited, you can compare the effects of market volatilities on Blue Star and Dacian 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 Dacian Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Dacian Gold.
Diversification Opportunities for Blue Star and Dacian Gold
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blue and Dacian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Gold and Dacian Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dacian 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 Dacian Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dacian Gold Limited has no effect on the direction of Blue Star i.e., Blue Star and Dacian Gold go up and down completely randomly.
Pair Corralation between Blue Star and Dacian Gold
If you would invest 6.01 in Dacian Gold Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Dacian Gold Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Blue Star Gold vs. Dacian Gold Limited
Performance |
| Timeline |
| Blue Star Gold |
| Dacian Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blue Star and Dacian Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Dacian Gold
The main advantage of trading using opposite Blue Star and Dacian Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Dacian 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 Dacian Gold will offset losses from the drop in Dacian 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 |
| Dacian Gold vs. Minnova Corp | Dacian Gold vs. Argo Gold | Dacian Gold vs. Advance Gold Corp | Dacian Gold vs. Blue Star Gold |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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