Correlation Between Bellevue Healthcare and Air Products
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Air Products 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 Bellevue Healthcare and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Healthcare Trust and Air Products Chemicals, you can compare the effects of market volatilities on Bellevue Healthcare and Air Products 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 Bellevue Healthcare with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Air Products.
Diversification Opportunities for Bellevue Healthcare and Air Products
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and Air is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals and Bellevue Healthcare 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 Bellevue Healthcare Trust are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products Chemicals has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Air Products go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Air Products
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 0.84 times more return on investment than Air Products. However, Bellevue Healthcare Trust is 1.19 times less risky than Air Products. It trades about 0.07 of its potential returns per unit of risk. Air Products Chemicals is currently generating about -0.04 per unit of risk. If you would invest 14,120 in Bellevue Healthcare Trust on October 30, 2024 and sell it today you would earn a total of 420.00 from holding Bellevue Healthcare Trust or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Air Products Chemicals
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Air Products Chemicals |
Bellevue Healthcare and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Air Products
The main advantage of trading using opposite Bellevue Healthcare and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| Bellevue Healthcare vs. Costco Wholesale Corp | Bellevue Healthcare vs. Zegona Communications Plc | Bellevue Healthcare vs. JD Sports Fashion | Bellevue Healthcare vs. Air Products Chemicals |
| Air Products vs. Pressure Technologies Plc | Air Products vs. Sealed Air Corp | Air Products vs. Xeros Technology Group | Air Products vs. Check Point Software |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |