Correlation Between Blue Earth and Eneos Holdings
Can any of the company-specific risk be diversified away by investing in both Blue Earth and Eneos Holdings 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 Earth and Eneos Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Earth Resources and Eneos Holdings ADR, you can compare the effects of market volatilities on Blue Earth and Eneos Holdings 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 Earth with a short position of Eneos Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Earth and Eneos Holdings.
Diversification Opportunities for Blue Earth and Eneos Holdings
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blue and Eneos is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Blue Earth Resources and Eneos Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eneos Holdings ADR and Blue Earth 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 Earth Resources are associated (or correlated) with Eneos Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eneos Holdings ADR has no effect on the direction of Blue Earth i.e., Blue Earth and Eneos Holdings go up and down completely randomly.
Pair Corralation between Blue Earth and Eneos Holdings
Given the investment horizon of 90 days Blue Earth Resources is expected to generate 7.57 times more return on investment than Eneos Holdings. However, Blue Earth is 7.57 times more volatile than Eneos Holdings ADR. It trades about 0.33 of its potential returns per unit of risk. Eneos Holdings ADR is currently generating about 0.06 per unit of risk. If you would invest 0.70 in Blue Earth Resources on September 16, 2024 and sell it today you would earn a total of 2.80 from holding Blue Earth Resources or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Earth Resources vs. Eneos Holdings ADR
Performance |
| Timeline |
| Blue Earth Resources |
| Eneos Holdings ADR |
Blue Earth and Eneos Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Earth and Eneos Holdings
The main advantage of trading using opposite Blue Earth and Eneos Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Earth position performs unexpectedly, Eneos Holdings 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 Eneos Holdings will offset losses from the drop in Eneos Holdings' long position.| Blue Earth vs. Eneos Holdings ADR | Blue Earth vs. HF Sinclair Corp | Blue Earth vs. Idemitsu Kosan CoLtd | Blue Earth vs. PBF Energy |
| Eneos Holdings vs. HF Sinclair Corp | Eneos Holdings vs. Idemitsu Kosan CoLtd | Eneos Holdings vs. PBF Energy | Eneos Holdings vs. Delek 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |