Correlation Between Cass Information and Blue Sphere
Can any of the company-specific risk be diversified away by investing in both Cass Information and Blue Sphere 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 Cass Information and Blue Sphere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and Blue Sphere Corp, you can compare the effects of market volatilities on Cass Information and Blue Sphere 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 Cass Information with a short position of Blue Sphere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and Blue Sphere.
Diversification Opportunities for Cass Information and Blue Sphere
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cass and Blue is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and Blue Sphere Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sphere Corp and Cass Information 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 Cass Information Systems are associated (or correlated) with Blue Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sphere Corp has no effect on the direction of Cass Information i.e., Cass Information and Blue Sphere go up and down completely randomly.
Pair Corralation between Cass Information and Blue Sphere
Given the investment horizon of 90 days Cass Information is expected to generate 1070.35 times less return on investment than Blue Sphere. But when comparing it to its historical volatility, Cass Information Systems is 201.66 times less risky than Blue Sphere. It trades about 0.07 of its potential returns per unit of risk. Blue Sphere Corp is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Blue Sphere Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Blue Sphere Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. Blue Sphere Corp
Performance |
| Timeline |
| Cass Information Systems |
| Blue Sphere Corp |
Cass Information and Blue Sphere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and Blue Sphere
The main advantage of trading using opposite Cass Information and Blue Sphere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, Blue Sphere 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 Sphere will offset losses from the drop in Blue Sphere's long position.| Cass Information vs. Genpact Limited | Cass Information vs. ASGN Inc | Cass Information vs. Gartner | Cass Information vs. The Hackett Group |
| Blue Sphere vs. Ozop Surgical Corp | Blue Sphere vs. Artificial Intelligence Technology | Blue Sphere vs. Sun Pacific Holding | Blue Sphere vs. Plyzer Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |