Correlation Between Blue Coast and MMTC
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By analyzing existing cross correlation between Blue Coast Hotels and MMTC Limited, you can compare the effects of market volatilities on Blue Coast and MMTC 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 MMTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and MMTC.
Diversification Opportunities for Blue Coast and MMTC
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and MMTC is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and MMTC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTC 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 MMTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTC Limited has no effect on the direction of Blue Coast i.e., Blue Coast and MMTC go up and down completely randomly.
Pair Corralation between Blue Coast and MMTC
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 0.39 times more return on investment than MMTC. However, Blue Coast Hotels is 2.55 times less risky than MMTC. It trades about 0.08 of its potential returns per unit of risk. MMTC Limited is currently generating about 0.03 per unit of risk. If you would invest 880.00 in Blue Coast Hotels on August 26, 2024 and sell it today you would earn a total of 118.00 from holding Blue Coast Hotels or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Blue Coast Hotels vs. MMTC Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| MMTC Limited |
Blue Coast and MMTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and MMTC
The main advantage of trading using opposite Blue Coast and MMTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, MMTC 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 MMTC will offset losses from the drop in MMTC'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 |
| MMTC vs. The Orissa Minerals | MMTC vs. DSJ Keep Learning | MMTC vs. Kingfa Science Technology | MMTC vs. Rico Auto Industries |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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