Correlation Between Future Health and Bleuacacia

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

By analyzing existing cross correlation between Future Health Esg and Bleuacacia Ltd Warrants, you can compare the effects of market volatilities on Future Health and Bleuacacia 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 Future Health with a short position of Bleuacacia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Health and Bleuacacia.

Diversification Opportunities for Future Health and Bleuacacia

0.0

Correlation Coefficient

Future Health  Bleuacacia

Pay attention - limited upside

The 3 months correlation between Future and Bleuacacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Health Esg and Bleuacacia Ltd Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bleuacacia Warrants and Future Health 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 Future Health Esg are associated (or correlated) with Bleuacacia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bleuacacia Warrants has no effect on the direction of Future Health i.e., Future Health and Bleuacacia go up and down completely randomly.

Pair Corralation between Future Health and Bleuacacia

If you would invest (100.00) in Bleuacacia Ltd Warrants on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Bleuacacia Ltd Warrants or generate -100.0% return on investment over 90 days.

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

Future Health Esg  vs.  Bleuacacia Ltd Warrants

Future Health Esg

Risk-Adjusted Performance

Very Weak

Over the last 90 days Future Health Esg has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Future Health is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Bleuacacia Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bleuacacia Ltd Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bleuacacia is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Future Health and Bleuacacia

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

The idea behind Future Health Esg and Bleuacacia Ltd Warrants 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.