Correlation Between Blue Coast and Selan Exploration
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By analyzing existing cross correlation between Blue Coast Hotels and Selan Exploration Technology, you can compare the effects of market volatilities on Blue Coast and Selan Exploration 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 Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Selan Exploration.
Diversification Opportunities for Blue Coast and Selan Exploration
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Selan is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration 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 Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Blue Coast i.e., Blue Coast and Selan Exploration go up and down completely randomly.
Pair Corralation between Blue Coast and Selan Exploration
Assuming the 90 days trading horizon Blue Coast is expected to generate 1.66 times less return on investment than Selan Exploration. But when comparing it to its historical volatility, Blue Coast Hotels is 1.65 times less risky than Selan Exploration. It trades about 0.09 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 22,955 in Selan Exploration Technology on September 28, 2024 and sell it today you would earn a total of 58,995 from holding Selan Exploration Technology or generate 257.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.66% |
| Values | Daily Returns |
Blue Coast Hotels vs. Selan Exploration Technology
Performance |
| Timeline |
| Blue Coast Hotels |
| Selan Exploration |
Blue Coast and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Selan Exploration
The main advantage of trading using opposite Blue Coast and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Blue Coast vs. Kaushalya Infrastructure Development | Blue Coast vs. Tarapur Transformers Limited | Blue Coast vs. Kingfa Science Technology | Blue Coast vs. Rico Auto Industries |
| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. Kalyani Steels Limited | Selan Exploration vs. Blue Coast Hotels |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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