Correlation Between Blue Coast and Digjam
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By analyzing existing cross correlation between Blue Coast Hotels and Digjam Limited, you can compare the effects of market volatilities on Blue Coast and Digjam 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 Digjam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Digjam.
Diversification Opportunities for Blue Coast and Digjam
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Digjam is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Digjam Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digjam Limited 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 Digjam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digjam Limited has no effect on the direction of Blue Coast i.e., Blue Coast and Digjam go up and down completely randomly.
Pair Corralation between Blue Coast and Digjam
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 1.27 times more return on investment than Digjam. However, Blue Coast is 1.27 times more volatile than Digjam Limited. It trades about 0.47 of its potential returns per unit of risk. Digjam Limited is currently generating about -0.25 per unit of risk. If you would invest 1,051 in Blue Coast Hotels on October 26, 2024 and sell it today you would earn a total of 1,587 from holding Blue Coast Hotels or generate 151.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Coast Hotels vs. Digjam Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| Digjam Limited |
Blue Coast and Digjam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Digjam
The main advantage of trading using opposite Blue Coast and Digjam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Digjam 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 Digjam will offset losses from the drop in Digjam's long position.| Blue Coast vs. Karur Vysya Bank | Blue Coast vs. Arman Financial Services | Blue Coast vs. Beta Drugs | Blue Coast vs. MIRC Electronics Limited |
| Digjam vs. SINCLAIRS HOTELS ORD | Digjam vs. Blue Coast Hotels | Digjam vs. Juniper Hotels | Digjam vs. Hindustan Copper 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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