Correlation Between Macerich and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Macerich and Bellevue Healthcare 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 Macerich and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macerich Co and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Macerich and Bellevue Healthcare 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 Macerich with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and Bellevue Healthcare.
Diversification Opportunities for Macerich and Bellevue Healthcare
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macerich and Bellevue is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Co and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust and Macerich 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 Macerich Co are associated (or correlated) with Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of Macerich i.e., Macerich and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Macerich and Bellevue Healthcare
Assuming the 90 days trading horizon Macerich Co is expected to generate 2.12 times more return on investment than Bellevue Healthcare. However, Macerich is 2.12 times more volatile than Bellevue Healthcare Trust. It trades about 0.09 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about 0.0 per unit of risk. If you would invest 1,069 in Macerich Co on August 28, 2024 and sell it today you would earn a total of 959.00 from holding Macerich Co or generate 89.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.26% |
| Values | Daily Returns |
Macerich Co vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Macerich |
| Bellevue Healthcare Trust |
Macerich and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macerich and Bellevue Healthcare
The main advantage of trading using opposite Macerich and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macerich position performs unexpectedly, Bellevue Healthcare 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 Bellevue Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| Macerich vs. Greenroc Mining PLC | Macerich vs. Aeorema Communications Plc | Macerich vs. Bisichi Mining PLC | Macerich vs. MoneysupermarketCom Group PLC |
| Bellevue Healthcare vs. Catalyst Media Group | Bellevue Healthcare vs. Oncimmune Holdings plc | Bellevue Healthcare vs. Invesco Health Care | Bellevue Healthcare vs. Coor Service Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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