Correlation Between Cairo Communication and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Cairo Communication 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 Cairo Communication and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cairo Communication SpA and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Cairo Communication 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 Cairo Communication with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Communication and Bellevue Healthcare.
Diversification Opportunities for Cairo Communication and Bellevue Healthcare
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cairo and Bellevue is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Communication SpA 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 Cairo Communication 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 Cairo Communication SpA 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 Cairo Communication i.e., Cairo Communication and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Cairo Communication and Bellevue Healthcare
Assuming the 90 days trading horizon Cairo Communication SpA is expected to under-perform the Bellevue Healthcare. In addition to that, Cairo Communication is 1.29 times more volatile than Bellevue Healthcare Trust. It trades about -0.05 of its total potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about 0.22 per unit of volatility. If you would invest 14,180 in Bellevue Healthcare Trust on October 11, 2024 and sell it today you would earn a total of 720.00 from holding Bellevue Healthcare Trust or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cairo Communication SpA vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Cairo Communication SpA |
| Bellevue Healthcare Trust |
Cairo Communication and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cairo Communication and Bellevue Healthcare
The main advantage of trading using opposite Cairo Communication and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Communication 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.| Cairo Communication vs. Metals Exploration Plc | Cairo Communication vs. Panther Metals PLC | Cairo Communication vs. Europa Metals | Cairo Communication vs. Wheaton Precious Metals |
| Bellevue Healthcare vs. Thor Mining PLC | Bellevue Healthcare vs. Blackrock World Mining | Bellevue Healthcare vs. URU Metals | Bellevue Healthcare vs. Cairo Communication SpA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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