Correlation Between HMT and Blue Jet
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By analyzing existing cross correlation between HMT Limited and Blue Jet Healthcare, you can compare the effects of market volatilities on HMT 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 HMT with a short position of Blue Jet. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMT and Blue Jet.
Diversification Opportunities for HMT and Blue Jet
Good diversification
The 3 months correlation between HMT and Blue is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HMT Limited 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 HMT 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 HMT Limited 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 HMT i.e., HMT and Blue Jet go up and down completely randomly.
Pair Corralation between HMT and Blue Jet
Assuming the 90 days trading horizon HMT Limited is expected to generate 1.34 times more return on investment than Blue Jet. However, HMT is 1.34 times more volatile than Blue Jet Healthcare. It trades about -0.04 of its potential returns per unit of risk. Blue Jet Healthcare is currently generating about -0.14 per unit of risk. If you would invest 7,091 in HMT Limited on September 12, 2024 and sell it today you would lose (216.00) from holding HMT Limited or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMT Limited vs. Blue Jet Healthcare
Performance |
| Timeline |
| HMT Limited |
| Blue Jet Healthcare |
HMT and Blue Jet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMT and Blue Jet
The main advantage of trading using opposite HMT and Blue Jet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMT 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.| HMT vs. Praxis Home Retail | HMT vs. Lakshmi Finance Industrial | HMT vs. Agarwal Industrial | HMT vs. NRB Industrial Bearings |
| Blue Jet vs. Reliance Industries Limited | Blue Jet vs. Tata Consultancy Services | Blue Jet vs. HDFC Bank Limited | Blue Jet vs. Bharti Airtel 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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