Correlation Between Industrial Investment and Blue Coast
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By analyzing existing cross correlation between Industrial Investment Trust and Blue Coast Hotels, you can compare the effects of market volatilities on Industrial Investment and Blue Coast 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 Industrial Investment with a short position of Blue Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Investment and Blue Coast.
Diversification Opportunities for Industrial Investment and Blue Coast
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Blue is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Investment Trust and Blue Coast Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Coast Hotels and Industrial Investment 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 Industrial Investment Trust are associated (or correlated) with Blue Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Coast Hotels has no effect on the direction of Industrial Investment i.e., Industrial Investment and Blue Coast go up and down completely randomly.
Pair Corralation between Industrial Investment and Blue Coast
Assuming the 90 days trading horizon Industrial Investment is expected to generate 11.32 times less return on investment than Blue Coast. But when comparing it to its historical volatility, Industrial Investment Trust is 1.14 times less risky than Blue Coast. It trades about 0.06 of its potential returns per unit of risk. Blue Coast Hotels is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 998.00 in Blue Coast Hotels on November 6, 2024 and sell it today you would earn a total of 2,088 from holding Blue Coast Hotels or generate 209.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Industrial Investment Trust vs. Blue Coast Hotels
Performance |
| Timeline |
| Industrial Investment |
| Blue Coast Hotels |
Industrial Investment and Blue Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Investment and Blue Coast
The main advantage of trading using opposite Industrial Investment and Blue Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Investment position performs unexpectedly, Blue Coast 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 Coast will offset losses from the drop in Blue Coast's long position.| Industrial Investment vs. The Byke Hospitality | Industrial Investment vs. Blue Jet Healthcare | Industrial Investment vs. Lotus Eye Hospital | Industrial Investment vs. Tata Steel Limited |
| Blue Coast vs. Vertoz Advertising Limited | Blue Coast vs. G Tec Jainx Education | Blue Coast vs. AUTHUM INVESTMENT INFRASTRUCTU | Blue Coast vs. Bajaj Holdings Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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