Correlation Between Blue Dolphin and Cosan SA
Can any of the company-specific risk be diversified away by investing in both Blue Dolphin and Cosan SA 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 Cosan SA 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 Cosan SA ADR, you can compare the effects of market volatilities on Blue Dolphin and Cosan SA 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 Cosan SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Dolphin and Cosan SA.
Diversification Opportunities for Blue Dolphin and Cosan SA
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Cosan is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Blue Dolphin Energy and Cosan SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosan SA ADR 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 Cosan SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosan SA ADR has no effect on the direction of Blue Dolphin i.e., Blue Dolphin and Cosan SA go up and down completely randomly.
Pair Corralation between Blue Dolphin and Cosan SA
If you would invest 606.00 in Blue Dolphin Energy on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Blue Dolphin Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Blue Dolphin Energy vs. Cosan SA ADR
Performance |
| Timeline |
| Blue Dolphin Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cosan SA ADR |
Blue Dolphin and Cosan SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Dolphin and Cosan SA
The main advantage of trading using opposite Blue Dolphin and Cosan SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Dolphin position performs unexpectedly, Cosan SA 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 Cosan SA will offset losses from the drop in Cosan SA's long position.| Blue Dolphin vs. Aemetis | Blue Dolphin vs. PBF Energy | Blue Dolphin vs. Clean Energy Fuels | Blue Dolphin vs. Par Pacific Holdings |
| Cosan SA vs. Delek Energy | Cosan SA vs. Crossamerica Partners LP | Cosan SA vs. Par Pacific Holdings | Cosan SA vs. Valvoline |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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