Correlation Between Quantum Solar and Blue Sphere

Can any of the company-specific risk be diversified away by investing in both Quantum Solar 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 Quantum Solar and Blue Sphere into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quantum Solar Power and Blue Sphere Corp, you can compare the effects of market volatilities on Quantum Solar 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 Quantum Solar with a short position of Blue Sphere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum Solar and Blue Sphere.

Diversification Opportunities for Quantum Solar and Blue Sphere

0.0

Correlation Coefficient

Quantum Solar  Blue Sphere

Pay attention - limited upside

The 3 months correlation between Quantum and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Solar Power 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 Quantum Solar 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 Quantum Solar Power 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 Quantum Solar i.e., Quantum Solar and Blue Sphere go up and down completely randomly.

Pair Corralation between Quantum Solar and Blue Sphere

If you would invest  0.01  in Blue Sphere Corp on August 31, 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	98.41%
Values	Daily Returns

Quantum Solar Power  vs.  Blue Sphere Corp

Quantum Solar Power

Risk-Adjusted Performance

Weakest

Over the last 90 days Quantum Solar Power has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Quantum Solar is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Blue Sphere Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Blue Sphere reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quantum Solar and Blue Sphere

The main advantage of trading using opposite Quantum Solar and Blue Sphere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Solar 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.

The idea behind Quantum Solar Power and Blue Sphere Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.