Correlation Between Blue Dolphin and Aemetis
Can any of the company-specific risk be diversified away by investing in both Blue Dolphin and Aemetis 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 Dolphin and Aemetis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Dolphin Energy and Aemetis, you can compare the effects of market volatilities on Blue Dolphin and Aemetis 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 Dolphin with a short position of Aemetis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Dolphin and Aemetis.
Diversification Opportunities for Blue Dolphin and Aemetis
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blue and Aemetis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Blue Dolphin Energy and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and Blue Dolphin 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 Dolphin Energy are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of Blue Dolphin i.e., Blue Dolphin and Aemetis go up and down completely randomly.
Pair Corralation between Blue Dolphin and Aemetis
If you would invest 288.00 in Aemetis on August 27, 2024 and sell it today you would earn a total of 115.00 from holding Aemetis or generate 39.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Blue Dolphin Energy vs. Aemetis
Performance |
| Timeline |
| Blue Dolphin Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aemetis |
Blue Dolphin and Aemetis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Dolphin and Aemetis
The main advantage of trading using opposite Blue Dolphin and Aemetis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Dolphin position performs unexpectedly, Aemetis 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 Aemetis will offset losses from the drop in Aemetis' long position.| Blue Dolphin vs. Aemetis | Blue Dolphin vs. PBF Energy | Blue Dolphin vs. Clean Energy Fuels | Blue Dolphin vs. Par Pacific Holdings |
| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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