Correlation Between Blue Sphere and Lundin Energy
Can any of the company-specific risk be diversified away by investing in both Blue Sphere and Lundin Energy 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 Sphere and Lundin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Sphere Corp and Lundin Energy AB, you can compare the effects of market volatilities on Blue Sphere and Lundin Energy 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 Sphere with a short position of Lundin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sphere and Lundin Energy.
Diversification Opportunities for Blue Sphere and Lundin Energy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and Lundin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sphere Corp and Lundin Energy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Energy AB and Blue Sphere 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 Sphere Corp are associated (or correlated) with Lundin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Energy AB has no effect on the direction of Blue Sphere i.e., Blue Sphere and Lundin Energy go up and down completely randomly.
Pair Corralation between Blue Sphere and Lundin Energy
Given the investment horizon of 90 days Blue Sphere Corp is expected to generate 341.87 times more return on investment than Lundin Energy. However, Blue Sphere is 341.87 times more volatile than Lundin Energy AB. It trades about 0.2 of its potential returns per unit of risk. Lundin Energy AB is currently generating about 0.13 per unit of risk. If you would invest 0.00 in Blue Sphere Corp on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Blue Sphere Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sphere Corp vs. Lundin Energy AB
Performance |
| Timeline |
| Blue Sphere Corp |
| Lundin Energy AB |
Blue Sphere and Lundin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sphere and Lundin Energy
The main advantage of trading using opposite Blue Sphere and Lundin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sphere position performs unexpectedly, Lundin Energy 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 Lundin Energy will offset losses from the drop in Lundin Energy's long position.| Blue Sphere vs. Ozop Surgical Corp | Blue Sphere vs. Artificial Intelligence Technology | Blue Sphere vs. Sun Pacific Holding | Blue Sphere vs. Plyzer Technologies |
| Lundin Energy vs. Renew Energy Global | Lundin Energy vs. Energy Vault Holdings | Lundin Energy vs. Fluence Energy | Lundin Energy vs. Advent Technologies Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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