Correlation Between Blue Sphere and ABCO Energy

Can any of the company-specific risk be diversified away by investing in both Blue Sphere and ABCO Energy 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 ABCO Energy 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 ABCO Energy, you can compare the effects of market volatilities on Blue Sphere and ABCO Energy 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 ABCO Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sphere and ABCO Energy.

Diversification Opportunities for Blue Sphere and ABCO Energy

0.0

Correlation Coefficient

Blue Sphere  ABCO Energy

Pay attention - limited upside

The 3 months correlation between Blue and ABCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sphere Corp and ABCO Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABCO Energy 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 ABCO Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABCO Energy has no effect on the direction of Blue Sphere i.e., Blue Sphere and ABCO Energy go up and down completely randomly.

Pair Corralation between Blue Sphere and ABCO Energy

If you would invest  0.01  in Blue Sphere Corp on May 17, 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	Flat
Strength	Insignificant
Accuracy	53.33%
Values	Daily Returns

Blue Sphere Corp  vs.  ABCO Energy

Blue Sphere Corp

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Blue Sphere reported solid returns over the last few months and may actually be approaching a breakup point.

ABCO Energy

Risk-Adjusted Performance

Weakest

Over the last 90 days ABCO Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, ABCO Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blue Sphere and ABCO Energy

The main advantage of trading using opposite Blue Sphere and ABCO Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sphere position performs unexpectedly, ABCO Energy 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 ABCO Energy will offset losses from the drop in ABCO Energy's long position.

The idea behind Blue Sphere Corp and ABCO Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.