Correlation Between Blue Sphere and Castor Maritime

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

Diversification Opportunities for Blue Sphere and Castor Maritime

0.27

Correlation Coefficient

Blue Sphere  Castor Maritime

Modest diversification

The 3 months correlation between Blue and Castor is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sphere Corp and Castor Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castor Maritime 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 Castor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castor Maritime has no effect on the direction of Blue Sphere i.e., Blue Sphere and Castor Maritime go up and down completely randomly.

Pair Corralation between Blue Sphere and Castor Maritime

Given the investment horizon of 90 days Blue Sphere Corp is expected to generate 133.29 times more return on investment than Castor Maritime. However, Blue Sphere is 133.29 times more volatile than Castor Maritime. It trades about 0.39 of its potential returns per unit of risk. Castor Maritime is currently generating about 0.02 per unit of risk. If you would invest  0.00  in Blue Sphere Corp on May 2, 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	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Blue Sphere Corp  vs.  Castor Maritime

Blue Sphere Corp

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 30 (%) 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.

Castor Maritime

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Castor Maritime are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Castor Maritime is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Blue Sphere and Castor Maritime

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

The idea behind Blue Sphere Corp and Castor Maritime 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 CEOs Directory module to screen CEOs from public companies around the world.