Correlation Between Bellevue Healthcare and CNH Industrial
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and CNH Industrial 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 CNH Industrial 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 CNH Industrial NV, you can compare the effects of market volatilities on Bellevue Healthcare and CNH Industrial 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 CNH Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and CNH Industrial.
Diversification Opportunities for Bellevue Healthcare and CNH Industrial
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bellevue and CNH is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and CNH Industrial NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNH Industrial NV 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 CNH Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNH Industrial NV has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and CNH Industrial go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and CNH Industrial
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to under-perform the CNH Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Bellevue Healthcare Trust is 2.65 times less risky than CNH Industrial. The stock trades about 0.0 of its potential returns per unit of risk. The CNH Industrial NV is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,446 in CNH Industrial NV on November 19, 2024 and sell it today you would lose (242.00) from holding CNH Industrial NV or give up 16.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.19% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. CNH Industrial NV
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| CNH Industrial NV |
Bellevue Healthcare and CNH Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and CNH Industrial
The main advantage of trading using opposite Bellevue Healthcare and CNH Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, CNH Industrial 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 CNH Industrial will offset losses from the drop in CNH Industrial's long position.| Bellevue Healthcare vs. United Internet AG | Bellevue Healthcare vs. Compal Electronics GDR | Bellevue Healthcare vs. STMicroelectronics NV | Bellevue Healthcare vs. Electronic Arts |
| CNH Industrial vs. LPKF Laser Electronics | CNH Industrial vs. Bisichi Mining PLC | CNH Industrial vs. Atalaya Mining | CNH Industrial vs. Ebro Foods |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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