Correlation Between Blue Sphere and BB Liquidating

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

Diversification Opportunities for Blue Sphere and BB Liquidating

0.0

Correlation Coefficient

Blue Sphere  BB Liquidating

Pay attention - limited upside

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

Pair Corralation between Blue Sphere and BB Liquidating

If you would invest  0.00  in Blue Sphere Corp on May 22, 2025 and sell it today you would earn a total of  0.00  from holding Blue Sphere Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blue Sphere Corp  vs.  BB Liquidating

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 27 (%) 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.

BB Liquidating

Risk-Adjusted Performance

Weakest

Over the last 90 days BB Liquidating has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, BB Liquidating is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Blue Sphere and BB Liquidating

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

The idea behind Blue Sphere Corp and BB Liquidating 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.