Correlation Between St Galler and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both St Galler 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 St Galler and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Bellevue Healthcare Trust, you can compare the effects of market volatilities on St Galler 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 St Galler with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Bellevue Healthcare.
Diversification Opportunities for St Galler and Bellevue Healthcare
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QQZ and Bellevue is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank 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 St Galler 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 St Galler Kantonalbank 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 St Galler i.e., St Galler and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between St Galler and Bellevue Healthcare
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 0.52 times more return on investment than Bellevue Healthcare. However, St Galler Kantonalbank is 1.92 times less risky than Bellevue Healthcare. It trades about 0.21 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about 0.05 per unit of risk. If you would invest 41,600 in St Galler Kantonalbank on September 14, 2024 and sell it today you would earn a total of 1,500 from holding St Galler Kantonalbank or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| St Galler Kantonalbank |
| Bellevue Healthcare Trust |
St Galler and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Bellevue Healthcare
The main advantage of trading using opposite St Galler and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler 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.| St Galler vs. Charter Communications Cl | St Galler vs. Verizon Communications | St Galler vs. National Beverage Corp | St Galler vs. Batm Advanced Communications |
| Bellevue Healthcare vs. Air Products Chemicals | Bellevue Healthcare vs. Cars Inc | Bellevue Healthcare vs. Host Hotels Resorts | Bellevue Healthcare vs. Synthomer plc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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