Correlation Between Stryve Foods and Blue Star
Can any of the company-specific risk be diversified away by investing in both Stryve Foods 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 Stryve Foods and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryve Foods and Blue Star Foods, you can compare the effects of market volatilities on Stryve Foods 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 Stryve Foods with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and Blue Star.
Diversification Opportunities for Stryve Foods and Blue Star
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stryve and Blue is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods 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 Stryve Foods 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 Stryve Foods 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 Stryve Foods i.e., Stryve Foods and Blue Star go up and down completely randomly.
Pair Corralation between Stryve Foods and Blue Star
Given the investment horizon of 90 days Stryve Foods is expected to generate 0.71 times more return on investment than Blue Star. However, Stryve Foods is 1.41 times less risky than Blue Star. It trades about -0.07 of its potential returns per unit of risk. Blue Star Foods is currently generating about -0.19 per unit of risk. If you would invest 197.00 in Stryve Foods on August 24, 2024 and sell it today you would lose (104.00) from holding Stryve Foods or give up 52.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryve Foods vs. Blue Star Foods
Performance |
| Timeline |
| Stryve Foods |
| Blue Star Foods |
Stryve Foods and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryve Foods and Blue Star
The main advantage of trading using opposite Stryve Foods and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods 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.| Stryve Foods vs. Better Choice | Stryve Foods vs. BioAdaptives | Stryve Foods vs. Beyond Oil | Stryve Foods vs. Bon Natural Life |
| Blue Star vs. Better Choice | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil | Blue Star vs. Bon Natural Life |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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