Correlation Between Blue Jet and Hemisphere Properties

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

By analyzing existing cross correlation between Blue Jet Healthcare and Hemisphere Properties India, you can compare the effects of market volatilities on Blue Jet and Hemisphere Properties 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 Blue Jet with a short position of Hemisphere Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Jet and Hemisphere Properties.

Diversification Opportunities for Blue Jet and Hemisphere Properties

-0.26

Correlation Coefficient

Blue Jet  Hemisphere Properties

Very good diversification

The 3 months correlation between Blue and Hemisphere is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Blue Jet Healthcare and Hemisphere Properties India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Properties and Blue Jet 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 Blue Jet Healthcare are associated (or correlated) with Hemisphere Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Properties has no effect on the direction of Blue Jet i.e., Blue Jet and Hemisphere Properties go up and down completely randomly.

Pair Corralation between Blue Jet and Hemisphere Properties

Assuming the 90 days trading horizon Blue Jet is expected to generate 1.17 times less return on investment than Hemisphere Properties. In addition to that, Blue Jet is 1.05 times more volatile than Hemisphere Properties India. It trades about 0.11 of its total potential returns per unit of risk. Hemisphere Properties India is currently generating about 0.14 per unit of volatility. If you would invest  16,748  in Hemisphere Properties India on September 28, 2024 and sell it today you would earn a total of  1,150  from holding Hemisphere Properties India or generate 6.87% return on investment over 90 days.

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

Blue Jet Healthcare  vs.  Hemisphere Properties India

Blue Jet Healthcare

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Jet Healthcare are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady forward-looking indicators, Blue Jet may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hemisphere Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hemisphere Properties India has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Blue Jet and Hemisphere Properties

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

The idea behind Blue Jet Healthcare and Hemisphere Properties India 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.