Correlation Between Blue Star and Whole Earth
Can any of the company-specific risk be diversified away by investing in both Blue Star and Whole Earth 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 Star and Whole Earth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Foods and Whole Earth Brands, you can compare the effects of market volatilities on Blue Star and Whole Earth 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 Star with a short position of Whole Earth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Whole Earth.
Diversification Opportunities for Blue Star and Whole Earth
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Whole is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Foods and Whole Earth Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whole Earth Brands and Blue Star 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 Star Foods are associated (or correlated) with Whole Earth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whole Earth Brands has no effect on the direction of Blue Star i.e., Blue Star and Whole Earth go up and down completely randomly.
Pair Corralation between Blue Star and Whole Earth
Given the investment horizon of 90 days Blue Star Foods is expected to under-perform the Whole Earth. In addition to that, Blue Star is 1.65 times more volatile than Whole Earth Brands. It trades about -0.11 of its total potential returns per unit of risk. Whole Earth Brands is currently generating about -0.02 per unit of volatility. If you would invest 439.00 in Whole Earth Brands on August 27, 2024 and sell it today you would lose (439.00) from holding Whole Earth Brands or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.48% |
| Values | Daily Returns |
Blue Star Foods vs. Whole Earth Brands
Performance |
| Timeline |
| Blue Star Foods |
| Whole Earth Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blue Star and Whole Earth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Whole Earth
The main advantage of trading using opposite Blue Star and Whole Earth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Whole Earth 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 Whole Earth will offset losses from the drop in Whole Earth's long position.| Blue Star vs. Better Choice | Blue Star vs. Stryve Foods | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil |
| Whole Earth vs. Seneca Foods Corp | Whole Earth vs. Lifeway Foods | Whole Earth vs. John B Sanfilippo | Whole Earth vs. Real Good Food |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |