Correlation Between Highland Global and Blue Sphere
Can any of the company-specific risk be diversified away by investing in both Highland Global and Blue Sphere 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 Highland Global and Blue Sphere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Global Allocation and Blue Sphere Corp, you can compare the effects of market volatilities on Highland Global and Blue Sphere 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 Highland Global with a short position of Blue Sphere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Global and Blue Sphere.
Diversification Opportunities for Highland Global and Blue Sphere
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Highland and Blue is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Blue Sphere Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sphere Corp and Highland Global 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 Highland Global Allocation are associated (or correlated) with Blue Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sphere Corp has no effect on the direction of Highland Global i.e., Highland Global and Blue Sphere go up and down completely randomly.
Pair Corralation between Highland Global and Blue Sphere
Given the investment horizon of 90 days Highland Global is expected to generate 2633.91 times less return on investment than Blue Sphere. But when comparing it to its historical volatility, Highland Global Allocation is 327.96 times less risky than Blue Sphere. It trades about 0.04 of its potential returns per unit of risk. Blue Sphere Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Blue Sphere Corp on June 4, 2025 and sell it today you would lose (0.01) from holding Blue Sphere Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Highland Global Allocation vs. Blue Sphere Corp
Performance |
| Timeline |
| Highland Global Allo |
| Blue Sphere Corp |
Highland Global and Blue Sphere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Global and Blue Sphere
The main advantage of trading using opposite Highland Global and Blue Sphere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global position performs unexpectedly, Blue Sphere 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 Blue Sphere will offset losses from the drop in Blue Sphere's long position.| Highland Global vs. Highland Opportunities And | Highland Global vs. Clough Global Allocation | Highland Global vs. Aberdeen Income Credit | Highland Global vs. Rivernorth Opportunities |
| Blue Sphere vs. Ozop Surgical Corp | Blue Sphere vs. Artificial Intelligence Technology | Blue Sphere vs. Sun Pacific Holding | Blue Sphere vs. Plyzer Technologies |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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