Correlation Between Hudson Technologies and Blue Sphere

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hudson Technologies and Blue Sphere 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 Hudson Technologies and Blue Sphere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Technologies and Blue Sphere Corp, you can compare the effects of market volatilities on Hudson Technologies and Blue Sphere 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 Hudson Technologies with a short position of Blue Sphere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and Blue Sphere.

Diversification Opportunities for Hudson Technologies and Blue Sphere

HudsonBlueDiversified AwayHudsonBlueDiversified Away100%
0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Hudson and Blue is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and Blue Sphere Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sphere Corp and Hudson Technologies 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 Hudson Technologies are associated (or correlated) with Blue Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sphere Corp has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and Blue Sphere go up and down completely randomly.

Pair Corralation between Hudson Technologies and Blue Sphere

Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the Blue Sphere. But the stock apears to be less risky and, when comparing its historical volatility, Hudson Technologies is 199.19 times less risky than Blue Sphere. The stock trades about -0.04 of its potential returns per unit of risk. The Blue Sphere Corp is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Blue Sphere Corp on November 15, 2024 and sell it today you would lose (0.01) from holding Blue Sphere Corp or give up 100.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.31%
ValuesDaily Returns

Hudson Technologies  vs.  Blue Sphere Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20020406080100
JavaScript chart by amCharts 3.21.15HDSN BLSP
       Timeline  
Hudson Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Hudson Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Hudson Technologies is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5.25.45.65.866.26.4
Blue Sphere Corp 

Risk-Adjusted Performance

Very Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Blue Sphere reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb

Hudson Technologies and Blue Sphere Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.22-2.41-1.6-0.79-0.01310.771.562.353.14 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15HDSN BLSP
       Returns  

Pair Trading with Hudson Technologies and Blue Sphere

The main advantage of trading using opposite Hudson Technologies and Blue Sphere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies position performs unexpectedly, Blue Sphere 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 Sphere will offset losses from the drop in Blue Sphere's long position.
The idea behind Hudson Technologies and Blue Sphere Corp 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
CEOs Directory
Screen CEOs from public companies around the world
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Transaction History
View history of all your transactions and understand their impact on performance