Correlation Between Bluestone Resources and Blue Star
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Blue Star 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 Bluestone Resources and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Blue Star Gold, you can compare the effects of market volatilities on Bluestone Resources and Blue Star 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 Bluestone Resources with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Blue Star.
Diversification Opportunities for Bluestone Resources and Blue Star
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluestone and Blue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Blue Star Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Gold and Bluestone Resources 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 Bluestone Resources are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Gold has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Blue Star go up and down completely randomly.
Pair Corralation between Bluestone Resources and Blue Star
Assuming the 90 days horizon Bluestone Resources is expected to generate 4.26 times more return on investment than Blue Star. However, Bluestone Resources is 4.26 times more volatile than Blue Star Gold. It trades about 0.11 of its potential returns per unit of risk. Blue Star Gold is currently generating about -0.21 per unit of risk. If you would invest 21.00 in Bluestone Resources on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Bluestone Resources or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bluestone Resources vs. Blue Star Gold
Performance |
| Timeline |
| Bluestone Resources |
| Blue Star Gold |
Bluestone Resources and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Blue Star
The main advantage of trading using opposite Bluestone Resources and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| Bluestone Resources vs. ATT Inc | Bluestone Resources vs. Merck Company | Bluestone Resources vs. Walt Disney | Bluestone Resources vs. Caterpillar |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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