Correlation Between Bellevue Healthcare and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Thor Industries 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 Thor Industries 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 Thor Industries, you can compare the effects of market volatilities on Bellevue Healthcare and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Thor Industries.
Diversification Opportunities for Bellevue Healthcare and Thor Industries
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and Thor is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Thor Industries go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Thor Industries
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 0.59 times more return on investment than Thor Industries. However, Bellevue Healthcare Trust is 1.69 times less risky than Thor Industries. It trades about 0.15 of its potential returns per unit of risk. Thor Industries is currently generating about -0.1 per unit of risk. If you would invest 13,080 in Bellevue Healthcare Trust on September 20, 2024 and sell it today you would earn a total of 600.00 from holding Bellevue Healthcare Trust or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Thor Industries
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Thor Industries |
Bellevue Healthcare and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Thor Industries
The main advantage of trading using opposite Bellevue Healthcare and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' long position.| Bellevue Healthcare vs. Catalyst Media Group | Bellevue Healthcare vs. CATLIN GROUP | Bellevue Healthcare vs. Tamburi Investment Partners | Bellevue Healthcare vs. Magnora ASA |
| Thor Industries vs. Dalata Hotel Group | Thor Industries vs. bet at home AG | Thor Industries vs. Melia Hotels | Thor Industries vs. Capital Drilling |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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