Correlation Between Bell Food and CAP LEASE
Can any of the company-specific risk be diversified away by investing in both Bell Food and CAP LEASE 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 Bell Food and CAP LEASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and CAP LEASE AVIATION, you can compare the effects of market volatilities on Bell Food and CAP LEASE 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 Bell Food with a short position of CAP LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and CAP LEASE.
Diversification Opportunities for Bell Food and CAP LEASE
Average diversification
The 3 months correlation between Bell and CAP is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group and CAP LEASE AVIATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP LEASE AVIATION and Bell Food 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 Bell Food Group are associated (or correlated) with CAP LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP LEASE AVIATION has no effect on the direction of Bell Food i.e., Bell Food and CAP LEASE go up and down completely randomly.
Pair Corralation between Bell Food and CAP LEASE
Assuming the 90 days trading horizon Bell Food Group is expected to generate 0.42 times more return on investment than CAP LEASE. However, Bell Food Group is 2.37 times less risky than CAP LEASE. It trades about -0.01 of its potential returns per unit of risk. CAP LEASE AVIATION is currently generating about -0.1 per unit of risk. If you would invest 27,196 in Bell Food Group on September 3, 2024 and sell it today you would lose (846.00) from holding Bell Food Group or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.82% |
| Values | Daily Returns |
Bell Food Group vs. CAP LEASE AVIATION
Performance |
| Timeline |
| Bell Food Group |
| CAP LEASE AVIATION |
Bell Food and CAP LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and CAP LEASE
The main advantage of trading using opposite Bell Food and CAP LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food position performs unexpectedly, CAP LEASE 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 CAP LEASE will offset losses from the drop in CAP LEASE's long position.| Bell Food vs. Hollywood Bowl Group | Bell Food vs. Atresmedia | Bell Food vs. MTI Wireless Edge | Bell Food vs. Aeorema Communications Plc |
| CAP LEASE vs. Centaur Media | CAP LEASE vs. Blackstone Loan Financing | CAP LEASE vs. Aeorema Communications Plc | CAP LEASE vs. Catalyst Media 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |