Correlation Between Thor Industries and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Thor Industries 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 Thor Industries and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Thor Industries 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 Thor Industries with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and Bellevue Healthcare.
Diversification Opportunities for Thor Industries and Bellevue Healthcare
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thor and Bellevue is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries 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 Thor Industries 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 Thor Industries 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 Thor Industries i.e., Thor Industries and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Thor Industries and Bellevue Healthcare
Assuming the 90 days trading horizon Thor Industries is expected to generate 2.29 times more return on investment than Bellevue Healthcare. However, Thor Industries is 2.29 times more volatile than Bellevue Healthcare Trust. It trades about 0.02 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about -0.01 per unit of risk. If you would invest 7,567 in Thor Industries on December 7, 2024 and sell it today you would earn a total of 960.00 from holding Thor Industries or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.7% |
| Values | Daily Returns |
Thor Industries vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Thor Industries |
| Bellevue Healthcare Trust |
Thor Industries and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and Bellevue Healthcare
The main advantage of trading using opposite Thor Industries and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries 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.| Thor Industries vs. Verizon Communications | Thor Industries vs. Eastman Chemical Co | Thor Industries vs. Telecom Italia SpA | Thor Industries vs. Dalata Hotel Group |
| Bellevue Healthcare vs. Fonix Mobile plc | Bellevue Healthcare vs. Planet Fitness Cl | Bellevue Healthcare vs. MyHealthChecked Plc | Bellevue Healthcare vs. Mobile Tornado Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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