Correlation Between Home First and Blue Jet
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By analyzing existing cross correlation between Home First Finance and Blue Jet Healthcare, you can compare the effects of market volatilities on Home First 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 Home First with a short position of Blue Jet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and Blue Jet.
Diversification Opportunities for Home First and Blue Jet
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and Blue is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance 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 Home First 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 Home First Finance 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 Home First i.e., Home First and Blue Jet go up and down completely randomly.
Pair Corralation between Home First and Blue Jet
Assuming the 90 days trading horizon Home First is expected to generate 2.63 times less return on investment than Blue Jet. But when comparing it to its historical volatility, Home First Finance is 1.17 times less risky than Blue Jet. It trades about 0.04 of its potential returns per unit of risk. Blue Jet Healthcare is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 41,261 in Blue Jet Healthcare on November 6, 2024 and sell it today you would earn a total of 33,784 from holding Blue Jet Healthcare or generate 81.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.99% |
| Values | Daily Returns |
Home First Finance vs. Blue Jet Healthcare
Performance |
| Timeline |
| Home First Finance |
| Blue Jet Healthcare |
Home First and Blue Jet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and Blue Jet
The main advantage of trading using opposite Home First and Blue Jet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home First 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.| Home First vs. Newgen Software Technologies | Home First vs. Embassy Office Parks | Home First vs. Reliance Home Finance | Home First vs. S P Apparels |
| Blue Jet vs. Associated Alcohols Breweries | Blue Jet vs. Tata Investment | Blue Jet vs. Ravi Kumar Distilleries | Blue Jet vs. Industrial Investment Trust |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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