Correlation Between Delcath Systems and Bluejay Diagnostics
Can any of the company-specific risk be diversified away by investing in both Delcath Systems and Bluejay Diagnostics 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 Delcath Systems and Bluejay Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delcath Systems and Bluejay Diagnostics, you can compare the effects of market volatilities on Delcath Systems and Bluejay Diagnostics 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 Delcath Systems with a short position of Bluejay Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delcath Systems and Bluejay Diagnostics.
Diversification Opportunities for Delcath Systems and Bluejay Diagnostics
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delcath and Bluejay is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Delcath Systems and Bluejay Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluejay Diagnostics and Delcath Systems 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 Delcath Systems are associated (or correlated) with Bluejay Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluejay Diagnostics has no effect on the direction of Delcath Systems i.e., Delcath Systems and Bluejay Diagnostics go up and down completely randomly.
Pair Corralation between Delcath Systems and Bluejay Diagnostics
Given the investment horizon of 90 days Delcath Systems is expected to generate 0.42 times more return on investment than Bluejay Diagnostics. However, Delcath Systems is 2.39 times less risky than Bluejay Diagnostics. It trades about 0.14 of its potential returns per unit of risk. Bluejay Diagnostics is currently generating about -0.18 per unit of risk. If you would invest 275.00 in Delcath Systems on August 26, 2024 and sell it today you would earn a total of 701.00 from holding Delcath Systems or generate 254.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delcath Systems vs. Bluejay Diagnostics
Performance |
| Timeline |
| Delcath Systems |
| Bluejay Diagnostics |
Delcath Systems and Bluejay Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delcath Systems and Bluejay Diagnostics
The main advantage of trading using opposite Delcath Systems and Bluejay Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delcath Systems position performs unexpectedly, Bluejay Diagnostics 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 Bluejay Diagnostics will offset losses from the drop in Bluejay Diagnostics' long position.| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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