Correlation Between BLUERUSH Media and Emerge Commerce

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

Diversification Opportunities for BLUERUSH Media and Emerge Commerce

BLUERUSHEmergeDiversified AwayBLUERUSHEmergeDiversified Away100%
-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between BLUERUSH and Emerge is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding BLUERUSH Media Group and Emerge Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerge Commerce and BLUERUSH Media 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 BLUERUSH Media Group are associated (or correlated) with Emerge Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerge Commerce has no effect on the direction of BLUERUSH Media i.e., BLUERUSH Media and Emerge Commerce go up and down completely randomly.

Pair Corralation between BLUERUSH Media and Emerge Commerce

Assuming the 90 days horizon BLUERUSH Media Group is expected to generate 2.48 times more return on investment than Emerge Commerce. However, BLUERUSH Media is 2.48 times more volatile than Emerge Commerce. It trades about 0.04 of its potential returns per unit of risk. Emerge Commerce is currently generating about 0.06 per unit of risk. If you would invest  2.00  in BLUERUSH Media Group on September 29, 2024 and sell it today you would lose (1.00) from holding BLUERUSH Media Group or give up 50.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BLUERUSH Media Group  vs.  Emerge Commerce

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -40-20020406080100
JavaScript chart by amCharts 3.21.15BTV ECOM
       Timeline  
BLUERUSH Media Group 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in BLUERUSH Media Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, BLUERUSH Media showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.010.0120.0140.0160.0180.02
Emerge Commerce 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Emerge Commerce are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Emerge Commerce showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.030.0350.040.0450.050.055

BLUERUSH Media and Emerge Commerce Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-74.38-55.71-37.04-18.360.3118.9338.5158.0977.6797.26 0.0010.0020.0030.0040.005
JavaScript chart by amCharts 3.21.15BTV ECOM
       Returns  

Pair Trading with BLUERUSH Media and Emerge Commerce

The main advantage of trading using opposite BLUERUSH Media and Emerge Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLUERUSH Media position performs unexpectedly, Emerge Commerce 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 Emerge Commerce will offset losses from the drop in Emerge Commerce's long position.
The idea behind BLUERUSH Media Group and Emerge Commerce 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes