Correlation Between Blue Coast and SAL Steel
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By analyzing existing cross correlation between Blue Coast Hotels and SAL Steel Limited, you can compare the effects of market volatilities on Blue Coast and SAL Steel 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 SAL Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and SAL Steel.
Diversification Opportunities for Blue Coast and SAL Steel
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and SAL is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and SAL Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAL Steel 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 SAL Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAL Steel Limited has no effect on the direction of Blue Coast i.e., Blue Coast and SAL Steel go up and down completely randomly.
Pair Corralation between Blue Coast and SAL Steel
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 0.87 times more return on investment than SAL Steel. However, Blue Coast Hotels is 1.14 times less risky than SAL Steel. It trades about 0.74 of its potential returns per unit of risk. SAL Steel Limited is currently generating about -0.13 per unit of risk. If you would invest 1,569 in Blue Coast Hotels on October 31, 2024 and sell it today you would earn a total of 1,174 from holding Blue Coast Hotels or generate 74.82% 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. SAL Steel Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| SAL Steel Limited |
Blue Coast and SAL Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and SAL Steel
The main advantage of trading using opposite Blue Coast and SAL Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, SAL Steel 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 SAL Steel will offset losses from the drop in SAL Steel's long position.| Blue Coast vs. MIC Electronics Limited | Blue Coast vs. Bank of Maharashtra | Blue Coast vs. Tamilnadu Telecommunication Limited | Blue Coast vs. OnMobile Global Limited |
| SAL Steel vs. Lakshmi Finance Industrial | SAL Steel vs. Le Travenues Technology | SAL Steel vs. Ankit Metal Power | SAL Steel vs. Shivalik Bimetal Controls |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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