Correlation Between BLUELINX HLDGS and HALSTEAD JAMES
Can any of the company-specific risk be diversified away by investing in both BLUELINX HLDGS and HALSTEAD JAMES 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 BLUELINX HLDGS and HALSTEAD JAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BLUELINX HLDGS DL 01 and HALSTEAD JAMES LS 05, you can compare the effects of market volatilities on BLUELINX HLDGS and HALSTEAD JAMES 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 BLUELINX HLDGS with a short position of HALSTEAD JAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLUELINX HLDGS and HALSTEAD JAMES.
Diversification Opportunities for BLUELINX HLDGS and HALSTEAD JAMES
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BLUELINX and HALSTEAD is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding BLUELINX HLDGS DL 01 and HALSTEAD JAMES LS 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALSTEAD JAMES LS and BLUELINX HLDGS 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 BLUELINX HLDGS DL 01 are associated (or correlated) with HALSTEAD JAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALSTEAD JAMES LS has no effect on the direction of BLUELINX HLDGS i.e., BLUELINX HLDGS and HALSTEAD JAMES go up and down completely randomly.
Pair Corralation between BLUELINX HLDGS and HALSTEAD JAMES
Assuming the 90 days trading horizon BLUELINX HLDGS DL 01 is expected to under-perform the HALSTEAD JAMES. In addition to that, BLUELINX HLDGS is 1.39 times more volatile than HALSTEAD JAMES LS 05. It trades about -0.03 of its total potential returns per unit of risk. HALSTEAD JAMES LS 05 is currently generating about -0.01 per unit of volatility. If you would invest 212.00 in HALSTEAD JAMES LS 05 on December 5, 2024 and sell it today you would lose (26.00) from holding HALSTEAD JAMES LS 05 or give up 12.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.6% |
Values | Daily Returns |
BLUELINX HLDGS DL 01 vs. HALSTEAD JAMES LS 05
Performance |
Timeline |
BLUELINX HLDGS DL |
HALSTEAD JAMES LS |
BLUELINX HLDGS and HALSTEAD JAMES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BLUELINX HLDGS and HALSTEAD JAMES
The main advantage of trading using opposite BLUELINX HLDGS and HALSTEAD JAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLUELINX HLDGS position performs unexpectedly, HALSTEAD JAMES 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 HALSTEAD JAMES will offset losses from the drop in HALSTEAD JAMES's long position.BLUELINX HLDGS vs. GOME Retail Holdings | BLUELINX HLDGS vs. MARKET VECTR RETAIL | BLUELINX HLDGS vs. ON Semiconductor | BLUELINX HLDGS vs. Fast Retailing Co |
HALSTEAD JAMES vs. AGNC Investment Corp | HALSTEAD JAMES vs. Japan Asia Investment | HALSTEAD JAMES vs. Perseus Mining Limited | HALSTEAD JAMES vs. Investment AB Latour |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |