Correlation Between Blue Hat and Victory Square

Can any of the company-specific risk be diversified away by investing in both Blue Hat and Victory Square 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 Blue Hat and Victory Square into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blue Hat Interactive and Victory Square Technologies, you can compare the effects of market volatilities on Blue Hat and Victory Square 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 Blue Hat with a short position of Victory Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and Victory Square.

Diversification Opportunities for Blue Hat and Victory Square

0.16

Correlation Coefficient

Blue Hat  Victory Square

Average diversification

The 3 months correlation between Blue and Victory is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and Victory Square Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Square Techn and Blue Hat 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 Blue Hat Interactive are associated (or correlated) with Victory Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Square Techn has no effect on the direction of Blue Hat i.e., Blue Hat and Victory Square go up and down completely randomly.

Pair Corralation between Blue Hat and Victory Square

Given the investment horizon of 90 days Blue Hat Interactive is expected to under-perform the Victory Square. In addition to that, Blue Hat is 1.45 times more volatile than Victory Square Technologies. It trades about -0.13 of its total potential returns per unit of risk. Victory Square Technologies is currently generating about -0.01 per unit of volatility. If you would invest  19.00  in Victory Square Technologies on December 28, 2024 and sell it today you would lose (6.00) from holding Victory Square Technologies or give up 31.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blue Hat Interactive  vs.  Victory Square Technologies

Blue Hat Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Hat Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Victory Square Techn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victory Square Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Victory Square is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Blue Hat and Victory Square

The main advantage of trading using opposite Blue Hat and Victory Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Hat position performs unexpectedly, Victory Square 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 Victory Square will offset losses from the drop in Victory Square's long position.

The idea behind Blue Hat Interactive and Victory Square Technologies 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.