Correlation Between Blue Coast and Hilton Metal
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By analyzing existing cross correlation between Blue Coast Hotels and Hilton Metal Forging, you can compare the effects of market volatilities on Blue Coast and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Hilton Metal.
Diversification Opportunities for Blue Coast and Hilton Metal
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Hilton is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of Blue Coast i.e., Blue Coast and Hilton Metal go up and down completely randomly.
Pair Corralation between Blue Coast and Hilton Metal
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 0.58 times more return on investment than Hilton Metal. However, Blue Coast Hotels is 1.72 times less risky than Hilton Metal. It trades about -0.22 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about -0.19 per unit of risk. If you would invest 1,051 in Blue Coast Hotels on September 2, 2024 and sell it today you would lose (53.00) from holding Blue Coast Hotels or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Blue Coast Hotels vs. Hilton Metal Forging
Performance |
| Timeline |
| Blue Coast Hotels |
| Hilton Metal Forging |
Blue Coast and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Hilton Metal
The main advantage of trading using opposite Blue Coast and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| Blue Coast vs. Indian Railway Finance | Blue Coast vs. Cholamandalam Financial Holdings | Blue Coast vs. Reliance Industries Limited | Blue Coast vs. Tata Consultancy Services |
| Hilton Metal vs. Reliance Industries Limited | Hilton Metal vs. Life Insurance | Hilton Metal vs. Indian Oil | Hilton Metal vs. Oil Natural Gas |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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