Correlation Between Silvercorp Metals and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals 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 Silvercorp Metals and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Silvercorp Metals 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 Silvercorp Metals with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and Bellevue Healthcare.
Diversification Opportunities for Silvercorp Metals and Bellevue Healthcare
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silvercorp and Bellevue is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals i.e., Silvercorp Metals and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Silvercorp Metals and Bellevue Healthcare
Assuming the 90 days trading horizon Silvercorp Metals is expected to generate 3.63 times more return on investment than Bellevue Healthcare. However, Silvercorp Metals is 3.63 times more volatile than Bellevue Healthcare Trust. It trades about 0.38 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about -0.37 per unit of risk. If you would invest 432.00 in Silvercorp Metals on November 29, 2024 and sell it today you would earn a total of 99.00 from holding Silvercorp Metals or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silvercorp Metals vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Silvercorp Metals |
| Bellevue Healthcare Trust |
Silvercorp Metals and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and Bellevue Healthcare
The main advantage of trading using opposite Silvercorp Metals and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals 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.| Silvercorp Metals vs. SMA Solar Technology | Silvercorp Metals vs. Polar Capital Technology | Silvercorp Metals vs. Learning Technologies Group | Silvercorp Metals vs. Vitec Software Group |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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