Correlation Between SupplyMe Capital and Blue Star

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

By analyzing existing cross correlation between SupplyMe Capital PLC and Blue Star Capital, you can compare the effects of market volatilities on SupplyMe Capital and Blue Star 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 SupplyMe Capital with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Blue Star.

Diversification Opportunities for SupplyMe Capital and Blue Star

0.1

Correlation Coefficient

SupplyMe Capital  Blue Star

Average diversification

The 3 months correlation between SupplyMe and Blue is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Blue Star Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Capital and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Capital has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Blue Star go up and down completely randomly.

Pair Corralation between SupplyMe Capital and Blue Star

Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the Blue Star. But the stock apears to be less risky and, when comparing its historical volatility, SupplyMe Capital PLC is 40.0 times less risky than Blue Star. The stock trades about -0.23 of its potential returns per unit of risk. The Blue Star Capital is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  350.00  in Blue Star Capital on October 25, 2024 and sell it today you would earn a total of  700.00  from holding Blue Star Capital or generate 200.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

SupplyMe Capital PLC  vs.  Blue Star Capital

SupplyMe Capital PLC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SupplyMe Capital PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, SupplyMe Capital unveiled solid returns over the last few months and may actually be approaching a breakup point.

Blue Star Capital

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Star Capital are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Blue Star exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SupplyMe Capital and Blue Star

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

The idea behind SupplyMe Capital PLC and Blue Star Capital 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.