Correlation Between Blue Star and Alba Mineral

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

By analyzing existing cross correlation between Blue Star Capital and Alba Mineral Resources, you can compare the effects of market volatilities on Blue Star and Alba Mineral 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 Star with a short position of Alba Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Alba Mineral.

Diversification Opportunities for Blue Star and Alba Mineral

-0.18

Correlation Coefficient

Blue Star  Alba Mineral

Good diversification

The 3 months correlation between Blue and Alba is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Capital and Alba Mineral Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alba Mineral Resources and Blue Star 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 Star Capital are associated (or correlated) with Alba Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alba Mineral Resources has no effect on the direction of Blue Star i.e., Blue Star and Alba Mineral go up and down completely randomly.

Pair Corralation between Blue Star and Alba Mineral

Assuming the 90 days trading horizon Blue Star Capital is expected to generate 2.65 times more return on investment than Alba Mineral. However, Blue Star is 2.65 times more volatile than Alba Mineral Resources. It trades about 0.15 of its potential returns per unit of risk. Alba Mineral Resources is currently generating about -0.05 per unit of risk. If you would invest  525.00  in Blue Star Capital on April 22, 2025 and sell it today you would earn a total of  1,175  from holding Blue Star Capital or generate 223.81% return on investment over 90 days.

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

Blue Star Capital  vs.  Alba Mineral Resources

Blue Star Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Star Capital are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Blue Star exhibited solid returns over the last few months and may actually be approaching a breakup point.

Alba Mineral Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alba Mineral Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Blue Star and Alba Mineral

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

The idea behind Blue Star Capital and Alba Mineral Resources 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .