Correlation Between Bit Origin and Blue Star
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Blue Star 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 Bit Origin and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Blue Star Foods, you can compare the effects of market volatilities on Bit Origin and Blue Star 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 Bit Origin with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Blue Star.
Diversification Opportunities for Bit Origin and Blue Star
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bit and Blue is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Blue Star Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Foods and Bit Origin 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 Bit Origin are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Foods has no effect on the direction of Bit Origin i.e., Bit Origin and Blue Star go up and down completely randomly.
Pair Corralation between Bit Origin and Blue Star
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Blue Star. But the stock apears to be less risky and, when comparing its historical volatility, Bit Origin is 2.77 times less risky than Blue Star. The stock trades about -0.27 of its potential returns per unit of risk. The Blue Star Foods is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Blue Star Foods on November 3, 2024 and sell it today you would lose (12.00) from holding Blue Star Foods or give up 44.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.34% |
| Values | Daily Returns |
Bit Origin vs. Blue Star Foods
Performance |
| Timeline |
| Bit Origin |
| Blue Star Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bit Origin and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Blue Star
The main advantage of trading using opposite Bit Origin and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Blue Star 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 Star will offset losses from the drop in Blue Star's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Blue Star vs. Better Choice | Blue Star vs. Stryve Foods | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |