Correlation Between Bodhi Tree and Blue Jet
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By analyzing existing cross correlation between Bodhi Tree Multimedia and Blue Jet Healthcare, you can compare the effects of market volatilities on Bodhi Tree and Blue Jet 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 Bodhi Tree with a short position of Blue Jet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodhi Tree and Blue Jet.
Diversification Opportunities for Bodhi Tree and Blue Jet
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bodhi and Blue is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bodhi Tree Multimedia and Blue Jet Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Jet Healthcare and Bodhi Tree 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 Bodhi Tree Multimedia are associated (or correlated) with Blue Jet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Jet Healthcare has no effect on the direction of Bodhi Tree i.e., Bodhi Tree and Blue Jet go up and down completely randomly.
Pair Corralation between Bodhi Tree and Blue Jet
Assuming the 90 days trading horizon Bodhi Tree Multimedia is expected to under-perform the Blue Jet. But the stock apears to be less risky and, when comparing its historical volatility, Bodhi Tree Multimedia is 1.21 times less risky than Blue Jet. The stock trades about -0.16 of its potential returns per unit of risk. The Blue Jet Healthcare is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 47,830 in Blue Jet Healthcare on August 31, 2024 and sell it today you would earn a total of 4,475 from holding Blue Jet Healthcare or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bodhi Tree Multimedia vs. Blue Jet Healthcare
Performance |
| Timeline |
| Bodhi Tree Multimedia |
| Blue Jet Healthcare |
Bodhi Tree and Blue Jet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bodhi Tree and Blue Jet
The main advantage of trading using opposite Bodhi Tree and Blue Jet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bodhi Tree position performs unexpectedly, Blue Jet 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 Blue Jet will offset losses from the drop in Blue Jet's long position.| Bodhi Tree vs. Tamilnadu Telecommunication Limited | Bodhi Tree vs. Paramount Communications Limited | Bodhi Tree vs. Hi Tech Pipes Limited | Bodhi Tree vs. SBI Life Insurance |
| Blue Jet vs. Reliance Communications Limited | Blue Jet vs. Asian Hotels Limited | Blue Jet vs. Paramount Communications Limited | Blue Jet vs. Gallantt Ispat Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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