Correlation Between Blue Sphere and PACCAR
Can any of the company-specific risk be diversified away by investing in both Blue Sphere and PACCAR 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 PACCAR 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 PACCAR Inc, you can compare the effects of market volatilities on Blue Sphere and PACCAR 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 PACCAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sphere and PACCAR.
Diversification Opportunities for Blue Sphere and PACCAR
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and PACCAR is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sphere Corp and PACCAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACCAR Inc 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 PACCAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACCAR Inc has no effect on the direction of Blue Sphere i.e., Blue Sphere and PACCAR go up and down completely randomly.
Pair Corralation between Blue Sphere and PACCAR
Given the investment horizon of 90 days Blue Sphere Corp is expected to generate 202.19 times more return on investment than PACCAR. However, Blue Sphere is 202.19 times more volatile than PACCAR Inc. It trades about 0.34 of its potential returns per unit of risk. PACCAR Inc is currently generating about 0.02 per unit of risk. If you would invest 0.00 in Blue Sphere Corp on July 6, 2025 and sell it today you would earn a total of 0.01 from holding Blue Sphere Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Blue Sphere Corp vs. PACCAR Inc
Performance |
| Timeline |
| Blue Sphere Corp |
| PACCAR Inc |
Blue Sphere and PACCAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sphere and PACCAR
The main advantage of trading using opposite Blue Sphere and PACCAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sphere position performs unexpectedly, PACCAR 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 PACCAR will offset losses from the drop in PACCAR's long position.| Blue Sphere vs. Casella Waste Systems | Blue Sphere vs. Perma Fix Environmental Svcs | Blue Sphere vs. Montrose Environmental Grp | Blue Sphere vs. American Battery Technology |
| PACCAR vs. AGCO Corporation | PACCAR vs. CH Robinson Worldwide | PACCAR vs. CNH Industrial NV | PACCAR vs. Cintas |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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