Correlation Between Bluejay Diagnostics and ECGI Holdings
Can any of the company-specific risk be diversified away by investing in both Bluejay Diagnostics and ECGI 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 Bluejay Diagnostics and ECGI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluejay Diagnostics and ECGI Holdings, you can compare the effects of market volatilities on Bluejay Diagnostics and ECGI 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 Bluejay Diagnostics with a short position of ECGI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluejay Diagnostics and ECGI Holdings.
Diversification Opportunities for Bluejay Diagnostics and ECGI Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bluejay and ECGI is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and ECGI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECGI Holdings and Bluejay Diagnostics 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 Bluejay Diagnostics are associated (or correlated) with ECGI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECGI Holdings has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and ECGI Holdings go up and down completely randomly.
Pair Corralation between Bluejay Diagnostics and ECGI Holdings
Given the investment horizon of 90 days Bluejay Diagnostics is expected to under-perform the ECGI Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Bluejay Diagnostics is 2.15 times less risky than ECGI Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The ECGI Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6.00 in ECGI Holdings on August 30, 2024 and sell it today you would lose (5.89) from holding ECGI Holdings or give up 98.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bluejay Diagnostics vs. ECGI Holdings
Performance |
| Timeline |
| Bluejay Diagnostics |
| ECGI Holdings |
Bluejay Diagnostics and ECGI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluejay Diagnostics and ECGI Holdings
The main advantage of trading using opposite Bluejay Diagnostics and ECGI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluejay Diagnostics position performs unexpectedly, ECGI 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 ECGI Holdings will offset losses from the drop in ECGI Holdings' long position.| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
| ECGI Holdings vs. Brainsway | ECGI Holdings vs. Bluejay Diagnostics | ECGI Holdings vs. Venus Concept | ECGI Holdings vs. Icecure Medical |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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