Correlation Between Bluebik Group and Beryl 8
Can any of the company-specific risk be diversified away by investing in both Bluebik Group and Beryl 8 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 Bluebik Group and Beryl 8 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluebik Group PCL and Beryl 8 Plus, you can compare the effects of market volatilities on Bluebik Group and Beryl 8 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 Bluebik Group with a short position of Beryl 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluebik Group and Beryl 8.
Diversification Opportunities for Bluebik Group and Beryl 8
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bluebik and Beryl is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bluebik Group PCL and Beryl 8 Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beryl 8 Plus and Bluebik Group 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 Bluebik Group PCL are associated (or correlated) with Beryl 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beryl 8 Plus has no effect on the direction of Bluebik Group i.e., Bluebik Group and Beryl 8 go up and down completely randomly.
Pair Corralation between Bluebik Group and Beryl 8
Assuming the 90 days trading horizon Bluebik Group PCL is expected to generate 0.89 times more return on investment than Beryl 8. However, Bluebik Group PCL is 1.12 times less risky than Beryl 8. It trades about -0.03 of its potential returns per unit of risk. Beryl 8 Plus is currently generating about -0.09 per unit of risk. If you would invest 7,123 in Bluebik Group PCL on September 1, 2024 and sell it today you would lose (2,773) from holding Bluebik Group PCL or give up 38.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluebik Group PCL vs. Beryl 8 Plus
Performance |
| Timeline |
| Bluebik Group PCL |
| Beryl 8 Plus |
Bluebik Group and Beryl 8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluebik Group and Beryl 8
The main advantage of trading using opposite Bluebik Group and Beryl 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluebik Group position performs unexpectedly, Beryl 8 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 Beryl 8 will offset losses from the drop in Beryl 8's long position.| Bluebik Group vs. Beryl 8 Plus | Bluebik Group vs. Forth Public | Bluebik Group vs. KCE Electronics Public | Bluebik Group vs. Hana Microelectronics Public |
| Beryl 8 vs. Bluebik Group PCL | Beryl 8 vs. Ditto Public | Beryl 8 vs. Forth Public | Beryl 8 vs. II Group Public |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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