Correlation Between CBIZ and Blue Water
Can any of the company-specific risk be diversified away by investing in both CBIZ and Blue Water 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 CBIZ and Blue Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBIZ Inc and Blue Water Ventures, you can compare the effects of market volatilities on CBIZ and Blue Water 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 CBIZ with a short position of Blue Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBIZ and Blue Water.
Diversification Opportunities for CBIZ and Blue Water
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBIZ and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBIZ Inc and Blue Water Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Water Ventures and CBIZ 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 CBIZ Inc are associated (or correlated) with Blue Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Water Ventures has no effect on the direction of CBIZ i.e., CBIZ and Blue Water go up and down completely randomly.
Pair Corralation between CBIZ and Blue Water
Considering the 90-day investment horizon CBIZ is expected to generate 2.04 times less return on investment than Blue Water. But when comparing it to its historical volatility, CBIZ Inc is 10.3 times less risky than Blue Water. It trades about 0.07 of its potential returns per unit of risk. Blue Water Ventures is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Blue Water Ventures on November 9, 2024 and sell it today you would lose (6.49) from holding Blue Water Ventures or give up 99.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.26% |
| Values | Daily Returns |
CBIZ Inc vs. Blue Water Ventures
Performance |
| Timeline |
| CBIZ Inc |
| Blue Water Ventures |
CBIZ and Blue Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBIZ and Blue Water
The main advantage of trading using opposite CBIZ and Blue Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBIZ position performs unexpectedly, Blue Water 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 Water will offset losses from the drop in Blue Water's long position.The idea behind CBIZ Inc and Blue Water Ventures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Blue Water vs. Mills Music Trust | Blue Water vs. Citrine Global Corp | Blue Water vs. DATA Communications Management | Blue Water vs. Ijj Corporation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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