Correlation Between Bluejay Diagnostics and Icad

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

By analyzing existing cross correlation between Bluejay Diagnostics and icad inc, you can compare the effects of market volatilities on Bluejay Diagnostics and Icad 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 Bluejay Diagnostics with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluejay Diagnostics and Icad.

Diversification Opportunities for Bluejay Diagnostics and Icad

-0.35

Correlation Coefficient

Bluejay Diagnostics  Icad

Very good diversification

The 3 months correlation between Bluejay and Icad is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Bluejay Diagnostics 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 Bluejay Diagnostics are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and Icad go up and down completely randomly.

Pair Corralation between Bluejay Diagnostics and Icad

Given the investment horizon of 90 days Bluejay Diagnostics is expected to under-perform the Icad. In addition to that, Bluejay Diagnostics is 2.25 times more volatile than icad inc. It trades about -0.1 of its total potential returns per unit of risk. icad inc is currently generating about -0.01 per unit of volatility. If you would invest  359.00  in icad inc on September 12, 2024 and sell it today you would lose (170.00) from holding icad inc or give up 47.35% of portfolio value over 90 days.

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

Bluejay Diagnostics  vs.  icad inc

Bluejay Diagnostics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bluejay Diagnostics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, Bluejay Diagnostics showed solid returns over the last few months and may actually be approaching a breakup point.

icad inc

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in icad inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Icad exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bluejay Diagnostics and Icad

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

The idea behind Bluejay Diagnostics and icad inc 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.