Correlation Between Bellevue Healthcare and Sydbank
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Sydbank 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 Sydbank 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 Sydbank, you can compare the effects of market volatilities on Bellevue Healthcare and Sydbank 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 Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Sydbank.
Diversification Opportunities for Bellevue Healthcare and Sydbank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bellevue and Sydbank is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank 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 Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Sydbank go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Sydbank
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to under-perform the Sydbank. In addition to that, Bellevue Healthcare is 1.14 times more volatile than Sydbank. It trades about -0.03 of its total potential returns per unit of risk. Sydbank is currently generating about 0.14 per unit of volatility. If you would invest 33,980 in Sydbank on September 4, 2024 and sell it today you would earn a total of 1,100 from holding Sydbank or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Sydbank
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Sydbank |
Bellevue Healthcare and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Sydbank
The main advantage of trading using opposite Bellevue Healthcare and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Bellevue Healthcare vs. SupplyMe Capital PLC | Bellevue Healthcare vs. Lloyds Banking Group | Bellevue Healthcare vs. Premier African Minerals | Bellevue Healthcare vs. SANTANDER UK 8 |
| Sydbank vs. Metals Exploration Plc | Sydbank vs. JB Hunt Transport | Sydbank vs. Lindsell Train Investment | Sydbank vs. EVS Broadcast Equipment |
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 Stocks Directory module to find actively traded stocks across global markets.
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