Correlation Between NYSE Composite and Blue Star
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Blue Star 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 NYSE Composite and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Blue Star Foods, you can compare the effects of market volatilities on NYSE Composite and Blue Star 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 NYSE Composite with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Blue Star.
Diversification Opportunities for NYSE Composite and Blue Star
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Blue is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Blue Star Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Foods and NYSE Composite 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 NYSE Composite are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Foods has no effect on the direction of NYSE Composite i.e., NYSE Composite and Blue Star go up and down completely randomly.
Pair Corralation between NYSE Composite and Blue Star
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.08 times more return on investment than Blue Star. However, NYSE Composite is 12.22 times less risky than Blue Star. It trades about 0.18 of its potential returns per unit of risk. Blue Star Foods is currently generating about -0.49 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 52,921 from holding NYSE Composite or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Blue Star Foods
Performance |
| Timeline |
NYSE Composite and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Blue Star Foods
Pair trading matchups for Blue Star
Pair Trading with NYSE Composite and Blue Star
The main advantage of trading using opposite NYSE Composite and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Blue Star 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 Star will offset losses from the drop in Blue Star's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Blue Star vs. Better Choice | Blue Star vs. Stryve Foods | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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