Correlation Between Bluestone Resources and Heliostar Metals
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Heliostar Metals 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 Heliostar Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Heliostar Metals, you can compare the effects of market volatilities on Bluestone Resources and Heliostar Metals 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 Heliostar Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Heliostar Metals.
Diversification Opportunities for Bluestone Resources and Heliostar Metals
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bluestone and Heliostar is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Heliostar Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliostar Metals 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 Heliostar Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliostar Metals has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Heliostar Metals go up and down completely randomly.
Pair Corralation between Bluestone Resources and Heliostar Metals
Assuming the 90 days horizon Bluestone Resources is expected to under-perform the Heliostar Metals. But the otc stock apears to be less risky and, when comparing its historical volatility, Bluestone Resources is 2.71 times less risky than Heliostar Metals. The otc stock trades about -0.15 of its potential returns per unit of risk. The Heliostar Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Heliostar Metals on August 26, 2024 and sell it today you would lose (1.00) from holding Heliostar Metals or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluestone Resources vs. Heliostar Metals
Performance |
| Timeline |
| Bluestone Resources |
| Heliostar Metals |
Bluestone Resources and Heliostar Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Heliostar Metals
The main advantage of trading using opposite Bluestone Resources and Heliostar Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Heliostar Metals 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 Heliostar Metals will offset losses from the drop in Heliostar Metals' long position.| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources vs. Blue Star Gold |
| Heliostar Metals vs. Aurion Resources | Heliostar Metals vs. Liberty Gold Corp | Heliostar Metals vs. Orezone Gold Corp | Heliostar Metals vs. Radisson Mining Resources |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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