Correlation Between Blue Star and Central Garden
Can any of the company-specific risk be diversified away by investing in both Blue Star and Central Garden 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 Central Garden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Foods and Central Garden Pet, you can compare the effects of market volatilities on Blue Star and Central Garden 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 Central Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Central Garden.
Diversification Opportunities for Blue Star and Central Garden
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Central is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Foods and Central Garden Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Garden Pet 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 Foods are associated (or correlated) with Central Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Garden Pet has no effect on the direction of Blue Star i.e., Blue Star and Central Garden go up and down completely randomly.
Pair Corralation between Blue Star and Central Garden
If you would invest (100.00) in Blue Star Foods on March 24, 2025 and sell it today you would earn a total of 100.00 from holding Blue Star Foods or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Blue Star Foods vs. Central Garden Pet
Performance |
| Timeline |
| Blue Star Foods |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Central Garden Pet |
Blue Star and Central Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Central Garden
The main advantage of trading using opposite Blue Star and Central Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Central Garden 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 Central Garden will offset losses from the drop in Central Garden's long position.| Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil | Blue Star vs. Bon Natural Life | Blue Star vs. Grand Havana |
| Central Garden vs. McCormick Company Incorporated | Central Garden vs. Natures Sunshine Products | Central Garden vs. Seneca Foods Corp | Central Garden vs. Central Garden Pet |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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