Correlation Between Blue Coast and Exide Industries
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By analyzing existing cross correlation between Blue Coast Hotels and Exide Industries Limited, you can compare the effects of market volatilities on Blue Coast and Exide Industries 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 Exide Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Exide Industries.
Diversification Opportunities for Blue Coast and Exide Industries
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Exide is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Exide Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exide Industries 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 Exide Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exide Industries has no effect on the direction of Blue Coast i.e., Blue Coast and Exide Industries go up and down completely randomly.
Pair Corralation between Blue Coast and Exide Industries
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 0.28 times more return on investment than Exide Industries. However, Blue Coast Hotels is 3.63 times less risky than Exide Industries. It trades about 4.36 of its potential returns per unit of risk. Exide Industries Limited is currently generating about -0.18 per unit of risk. If you would invest 3,273 in Blue Coast Hotels on December 8, 2024 and sell it today you would earn a total of 1,579 from holding Blue Coast Hotels or generate 48.24% 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. Exide Industries Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| Exide Industries |
Blue Coast and Exide Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Exide Industries
The main advantage of trading using opposite Blue Coast and Exide Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Exide Industries 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 Exide Industries will offset losses from the drop in Exide Industries' long position.| Blue Coast vs. Lemon Tree Hotels | ||
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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