Correlation Between Telix Pharmaceuticals and Bluebet Holdings

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

By analyzing existing cross correlation between Telix Pharmaceuticals and Bluebet Holdings, you can compare the effects of market volatilities on Telix Pharmaceuticals and Bluebet Holdings 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 Telix Pharmaceuticals with a short position of Bluebet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telix Pharmaceuticals and Bluebet Holdings.

Diversification Opportunities for Telix Pharmaceuticals and Bluebet Holdings

0.85

Correlation Coefficient

Telix Pharmaceuticals  Bluebet Holdings

Very poor diversification

The 3 months correlation between Telix and Bluebet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals and Bluebet Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluebet Holdings and Telix Pharmaceuticals 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 Telix Pharmaceuticals are associated (or correlated) with Bluebet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluebet Holdings has no effect on the direction of Telix Pharmaceuticals i.e., Telix Pharmaceuticals and Bluebet Holdings go up and down completely randomly.

Pair Corralation between Telix Pharmaceuticals and Bluebet Holdings

Assuming the 90 days trading horizon Telix Pharmaceuticals is expected to generate 0.53 times more return on investment than Bluebet Holdings. However, Telix Pharmaceuticals is 1.9 times less risky than Bluebet Holdings. It trades about 0.14 of its potential returns per unit of risk. Bluebet Holdings is currently generating about 0.04 per unit of risk. If you would invest  1,115  in Telix Pharmaceuticals on October 19, 2024 and sell it today you would earn a total of  1,465  from holding Telix Pharmaceuticals or generate 131.39% return on investment over 90 days.

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

Telix Pharmaceuticals  vs.  Bluebet Holdings

Telix Pharmaceuticals

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Telix Pharmaceuticals are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Telix Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bluebet Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bluebet Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bluebet Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Telix Pharmaceuticals and Bluebet Holdings

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

The idea behind Telix Pharmaceuticals and Bluebet Holdings 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.