Correlation Between Bluebik Group and Chamni Eye
Can any of the company-specific risk be diversified away by investing in both Bluebik Group and Chamni Eye 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 Chamni Eye 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 Chamni Eye PCL, you can compare the effects of market volatilities on Bluebik Group and Chamni Eye 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 Chamni Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluebik Group and Chamni Eye.
Diversification Opportunities for Bluebik Group and Chamni Eye
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bluebik and Chamni is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bluebik Group PCL and Chamni Eye PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chamni Eye PCL 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 Chamni Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chamni Eye PCL has no effect on the direction of Bluebik Group i.e., Bluebik Group and Chamni Eye go up and down completely randomly.
Pair Corralation between Bluebik Group and Chamni Eye
Assuming the 90 days trading horizon Bluebik Group PCL is expected to generate 1.82 times more return on investment than Chamni Eye. However, Bluebik Group is 1.82 times more volatile than Chamni Eye PCL. It trades about 0.11 of its potential returns per unit of risk. Chamni Eye PCL is currently generating about -0.11 per unit of risk. If you would invest 3,150 in Bluebik Group PCL on August 29, 2024 and sell it today you would earn a total of 1,300 from holding Bluebik Group PCL or generate 41.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluebik Group PCL vs. Chamni Eye PCL
Performance |
| Timeline |
| Bluebik Group PCL |
| Chamni Eye PCL |
Bluebik Group and Chamni Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluebik Group and Chamni Eye
The main advantage of trading using opposite Bluebik Group and Chamni Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluebik Group position performs unexpectedly, Chamni Eye 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 Chamni Eye will offset losses from the drop in Chamni Eye'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 |
| Chamni Eye vs. Bioscience Animal Health | Chamni Eye vs. Bless Asset Group | Chamni Eye vs. CAZ Public | Chamni Eye vs. Bluebik Group PCL |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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