Correlation Between Bellevue Healthcare and Systemair
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Systemair 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 Systemair 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 Systemair AB, you can compare the effects of market volatilities on Bellevue Healthcare and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Systemair.
Diversification Opportunities for Bellevue Healthcare and Systemair
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and Systemair is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Systemair go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Systemair
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 0.35 times more return on investment than Systemair. However, Bellevue Healthcare Trust is 2.83 times less risky than Systemair. It trades about 0.1 of its potential returns per unit of risk. Systemair AB is currently generating about -0.07 per unit of risk. If you would invest 14,420 in Bellevue Healthcare Trust on November 3, 2024 and sell it today you would earn a total of 300.00 from holding Bellevue Healthcare Trust or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Systemair AB
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Systemair AB |
Bellevue Healthcare and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Systemair
The main advantage of trading using opposite Bellevue Healthcare and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Bellevue Healthcare vs. McEwen Mining | Bellevue Healthcare vs. Europa Metals | Bellevue Healthcare vs. Charter Communications Cl | Bellevue Healthcare vs. Jacquet Metal Service |
| Systemair vs. Vitec Software Group | Systemair vs. Raytheon Technologies Corp | Systemair vs. Sealed Air Corp | Systemair vs. Air Products Chemicals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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