Correlation Between Blue Sphere and Kroger
Can any of the company-specific risk be diversified away by investing in both Blue Sphere and Kroger 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 Sphere and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Sphere Corp and Kroger Company, you can compare the effects of market volatilities on Blue Sphere and Kroger 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 Sphere with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sphere and Kroger.
Diversification Opportunities for Blue Sphere and Kroger
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Kroger is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sphere Corp and Kroger Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger Company and Blue Sphere 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 Sphere Corp are associated (or correlated) with Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kroger Company has no effect on the direction of Blue Sphere i.e., Blue Sphere and Kroger go up and down completely randomly.
Pair Corralation between Blue Sphere and Kroger
Given the investment horizon of 90 days Blue Sphere Corp is expected to generate 218.07 times more return on investment than Kroger. However, Blue Sphere is 218.07 times more volatile than Kroger Company. It trades about 0.3 of its potential returns per unit of risk. Kroger Company is currently generating about -0.28 per unit of risk. If you would invest 0.00 in Blue Sphere Corp on June 11, 2025 and sell it today you would earn a total of 0.00 from holding Blue Sphere Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Blue Sphere Corp vs. Kroger Company
Performance |
| Timeline |
| Blue Sphere Corp |
| Kroger Company |
Blue Sphere and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sphere and Kroger
The main advantage of trading using opposite Blue Sphere and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sphere position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| Blue Sphere vs. Ozop Surgical Corp | Blue Sphere vs. Artificial Intelligence Technology | Blue Sphere vs. Sun Pacific Holding | Blue Sphere vs. Plyzer Technologies |
| Kroger vs. Albertsons Companies | Kroger vs. Krispy Kreme | Kroger vs. General Mills | Kroger vs. Grocery Outlet Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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