Correlation Between Theralase Technologies and BluMetric Environmental

Can any of the company-specific risk be diversified away by investing in both Theralase Technologies and BluMetric Environmental 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 Theralase Technologies and BluMetric Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Theralase Technologies and BluMetric Environmental, you can compare the effects of market volatilities on Theralase Technologies and BluMetric Environmental 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 Theralase Technologies with a short position of BluMetric Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Theralase Technologies and BluMetric Environmental.

Diversification Opportunities for Theralase Technologies and BluMetric Environmental

-0.09

Correlation Coefficient

Theralase Technologies  BluMetric Environmental

Good diversification

The 3 months correlation between Theralase and BluMetric is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Theralase Technologies and BluMetric Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BluMetric Environmental and Theralase Technologies 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 Theralase Technologies are associated (or correlated) with BluMetric Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BluMetric Environmental has no effect on the direction of Theralase Technologies i.e., Theralase Technologies and BluMetric Environmental go up and down completely randomly.

Pair Corralation between Theralase Technologies and BluMetric Environmental

Assuming the 90 days horizon Theralase Technologies is expected to generate 0.95 times more return on investment than BluMetric Environmental. However, Theralase Technologies is 1.05 times less risky than BluMetric Environmental. It trades about 0.07 of its potential returns per unit of risk. BluMetric Environmental is currently generating about 0.0 per unit of risk. If you would invest  19.00  in Theralase Technologies on May 7, 2025 and sell it today you would earn a total of  3.00  from holding Theralase Technologies or generate 15.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Theralase Technologies  vs.  BluMetric Environmental

Theralase Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Theralase Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Theralase Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

BluMetric Environmental

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Theralase Technologies and BluMetric Environmental

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

The idea behind Theralase Technologies and BluMetric Environmental 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.