Correlation Between Blue Coast and Steelcast
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By analyzing existing cross correlation between Blue Coast Hotels and Steelcast Limited, you can compare the effects of market volatilities on Blue Coast and Steelcast 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 Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Steelcast.
Diversification Opportunities for Blue Coast and Steelcast
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and Steelcast is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast 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 Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of Blue Coast i.e., Blue Coast and Steelcast go up and down completely randomly.
Pair Corralation between Blue Coast and Steelcast
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 0.93 times more return on investment than Steelcast. However, Blue Coast Hotels is 1.07 times less risky than Steelcast. It trades about 0.08 of its potential returns per unit of risk. Steelcast Limited is currently generating about 0.06 per unit of risk. If you would invest 660.00 in Blue Coast Hotels on August 30, 2024 and sell it today you would earn a total of 338.00 from holding Blue Coast Hotels or generate 51.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.97% |
| Values | Daily Returns |
Blue Coast Hotels vs. Steelcast Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| Steelcast Limited |
Blue Coast and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Steelcast
The main advantage of trading using opposite Blue Coast and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.| Blue Coast vs. Hemisphere Properties India | Blue Coast vs. India Glycols Limited | Blue Coast vs. Indo Borax Chemicals | Blue Coast vs. Kingfa Science Technology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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