Correlation Between Bellevue Healthcare and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Bellevue Healthcare and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Jacquet Metal.
Diversification Opportunities for Bellevue Healthcare and Jacquet Metal
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bellevue and Jacquet is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Jacquet Metal go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Jacquet Metal
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, Bellevue Healthcare Trust is 1.24 times less risky than Jacquet Metal. The stock trades about -0.37 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 1,633 in Jacquet Metal Service on November 29, 2024 and sell it today you would earn a total of 167.00 from holding Jacquet Metal Service or generate 10.23% 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. Jacquet Metal Service
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Jacquet Metal Service |
Bellevue Healthcare and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Jacquet Metal
The main advantage of trading using opposite Bellevue Healthcare and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Bellevue Healthcare vs. Bisichi Mining PLC | Bellevue Healthcare vs. AfriTin Mining | Bellevue Healthcare vs. URU Metals | Bellevue Healthcare vs. Cornish Metals |
| Jacquet Metal vs. Commerzbank AG | Jacquet Metal vs. UNIQA Insurance Group | Jacquet Metal vs. Waste Management | Jacquet Metal vs. Impax Asset Management |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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