Correlation Between Las Vegas and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Las Vegas 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 Las Vegas and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Las Vegas Sands and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Las Vegas 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 Las Vegas with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and Bellevue Healthcare.
Diversification Opportunities for Las Vegas and Bellevue Healthcare
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Las and Bellevue is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands 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 Las Vegas 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 Las Vegas Sands 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 Las Vegas i.e., Las Vegas and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Las Vegas and Bellevue Healthcare
Assuming the 90 days trading horizon Las Vegas Sands is expected to generate 1.48 times more return on investment than Bellevue Healthcare. However, Las Vegas is 1.48 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 0.0 per unit of risk. If you would invest 4,749 in Las Vegas Sands on September 3, 2024 and sell it today you would earn a total of 546.00 from holding Las Vegas Sands or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Las Vegas Sands vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Las Vegas Sands |
| Bellevue Healthcare Trust |
Las Vegas and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Vegas and Bellevue Healthcare
The main advantage of trading using opposite Las Vegas and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Vegas 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.| Las Vegas vs. Bellevue Healthcare Trust | Las Vegas vs. Spire Healthcare Group | Las Vegas vs. Veolia Environnement VE | Las Vegas vs. Optima Health plc |
| Bellevue Healthcare vs. SupplyMe Capital PLC | Bellevue Healthcare vs. 88 Energy | Bellevue Healthcare vs. Vodafone Group PLC | Bellevue Healthcare vs. Vodafone Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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