Correlation Between Blue Coast and Apex Frozen
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By analyzing existing cross correlation between Blue Coast Hotels and Apex Frozen Foods, you can compare the effects of market volatilities on Blue Coast and Apex Frozen 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 Coast with a short position of Apex Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Apex Frozen.
Diversification Opportunities for Blue Coast and Apex Frozen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Apex is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Apex Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Frozen Foods and Blue Coast 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 Coast Hotels are associated (or correlated) with Apex Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Frozen Foods has no effect on the direction of Blue Coast i.e., Blue Coast and Apex Frozen go up and down completely randomly.
Pair Corralation between Blue Coast and Apex Frozen
Assuming the 90 days trading horizon Blue Coast is expected to generate 1.06 times less return on investment than Apex Frozen. But when comparing it to its historical volatility, Blue Coast Hotels is 2.14 times less risky than Apex Frozen. It trades about 0.08 of its potential returns per unit of risk. Apex Frozen Foods is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 20,558 in Apex Frozen Foods on August 28, 2024 and sell it today you would earn a total of 1,874 from holding Apex Frozen Foods or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Coast Hotels vs. Apex Frozen Foods
Performance |
| Timeline |
| Blue Coast Hotels |
| Apex Frozen Foods |
Blue Coast and Apex Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Apex Frozen
The main advantage of trading using opposite Blue Coast and Apex Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Apex Frozen 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 Apex Frozen will offset losses from the drop in Apex Frozen's long position.| Blue Coast vs. MMTC Limited | Blue Coast vs. Kingfa Science Technology | Blue Coast vs. Rico Auto Industries | Blue Coast vs. GACM Technologies Limited |
| Apex Frozen vs. SAL Steel Limited | Apex Frozen vs. Tata Steel Limited | Apex Frozen vs. Steelcast Limited | Apex Frozen vs. Neogen Chemicals Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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