Correlation Between Blue Moon and XL Fleet
Can any of the company-specific risk be diversified away by investing in both Blue Moon and XL Fleet at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blue Moon and XL Fleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Moon Metals and XL Fleet Corp, you can compare the effects of market volatilities on Blue Moon and XL Fleet 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 Moon with a short position of XL Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Moon and XL Fleet.
Diversification Opportunities for Blue Moon and XL Fleet
Very good diversification
The 3 months correlation between Blue and XL Fleet is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Blue Moon Metals and XL Fleet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Fleet Corp and Blue Moon 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 Moon Metals are associated (or correlated) with XL Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Fleet Corp has no effect on the direction of Blue Moon i.e., Blue Moon and XL Fleet go up and down completely randomly.
Pair Corralation between Blue Moon and XL Fleet
If you would invest 3.50 in Blue Moon Metals on September 23, 2024 and sell it today you would earn a total of 21.50 from holding Blue Moon Metals or generate 614.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Blue Moon Metals vs. XL Fleet Corp
Performance |
| Timeline |
| Blue Moon Metals |
| XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blue Moon and XL Fleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Moon and XL Fleet
The main advantage of trading using opposite Blue Moon and XL Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Moon position performs unexpectedly, XL Fleet 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 XL Fleet will offset losses from the drop in XL Fleet's long position.| Blue Moon vs. Altair International Corp | Blue Moon vs. Global Battery Metals | Blue Moon vs. Lake Resources NL | Blue Moon vs. Jourdan Resources |
| XL Fleet vs. Blue Moon Metals | XL Fleet vs. Forsys Metals Corp | XL Fleet vs. Lifevantage | XL Fleet vs. East Africa Metals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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