Correlation Between Chia and Blue Line
Can any of the company-specific risk be diversified away by investing in both Chia and Blue Line 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 Chia and Blue Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and Blue Line Protection, you can compare the effects of market volatilities on Chia and Blue Line 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 Chia with a short position of Blue Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and Blue Line.
Diversification Opportunities for Chia and Blue Line
Excellent diversification
The 3 months correlation between Chia and Blue is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Blue Line Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Line Protection and Chia 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 Chia are associated (or correlated) with Blue Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Line Protection has no effect on the direction of Chia i.e., Chia and Blue Line go up and down completely randomly.
Pair Corralation between Chia and Blue Line
Assuming the 90 days trading horizon Chia is expected to under-perform the Blue Line. But the crypto coin apears to be less risky and, when comparing its historical volatility, Chia is 1.3 times less risky than Blue Line. The crypto coin trades about -0.19 of its potential returns per unit of risk. The Blue Line Protection is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6.19 in Blue Line Protection on November 2, 2024 and sell it today you would lose (0.19) from holding Blue Line Protection or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chia vs. Blue Line Protection
Performance |
| Timeline |
| Chia |
| Blue Line Protection |
Chia and Blue Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia and Blue Line
The main advantage of trading using opposite Chia and Blue Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia position performs unexpectedly, Blue Line 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 Line will offset losses from the drop in Blue Line's long position.The idea behind Chia and Blue Line Protection pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Blue Line vs. BIO Key International | Blue Line vs. LogicMark | Blue Line vs. Knightscope | Blue Line vs. Guardforce AI Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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