Correlation Between Blue Star and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Blue Star and Medical 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 Star and Medical Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Capital and Medical Properties Trust, you can compare the effects of market volatilities on Blue Star and Medical 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 Star with a short position of Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Medical Properties.
Diversification Opportunities for Blue Star and Medical Properties
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Medical is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Capital and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust and Blue Star 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 Star Capital are associated (or correlated) with Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Blue Star i.e., Blue Star and Medical Properties go up and down completely randomly.
Pair Corralation between Blue Star and Medical Properties
Assuming the 90 days trading horizon Blue Star Capital is expected to under-perform the Medical Properties. In addition to that, Blue Star is 1.54 times more volatile than Medical Properties Trust. It trades about -0.14 of its total potential returns per unit of risk. Medical Properties Trust is currently generating about 0.12 per unit of volatility. If you would invest 477.00 in Medical Properties Trust on September 13, 2025 and sell it today you would earn a total of 78.00 from holding Medical Properties Trust or generate 16.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Star Capital vs. Medical Properties Trust
Performance |
| Timeline |
| Blue Star Capital |
| Medical Properties Trust |
Blue Star and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Medical Properties
The main advantage of trading using opposite Blue Star and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Medical 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 Medical Properties will offset losses from the drop in Medical Properties' long position.| Blue Star vs. Aberdeen Diversified Income | Blue Star vs. Canadian General Investments | Blue Star vs. Scottish Mortgage Investment | Blue Star vs. Smithson Investment Trust |
| Medical Properties vs. Roadside Real Estate | Medical Properties vs. Power Metal Resources | Medical Properties vs. Tamburi Investment Partners | Medical Properties vs. Synergia Energy |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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