Correlation Between Bellevue Healthcare and American Express
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and American Express 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 American Express 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 American Express Co, you can compare the effects of market volatilities on Bellevue Healthcare and American Express 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 American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and American Express.
Diversification Opportunities for Bellevue Healthcare and American Express
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and American is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and American Express go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and American Express
Assuming the 90 days trading horizon Bellevue Healthcare is expected to generate 37.35 times less return on investment than American Express. But when comparing it to its historical volatility, Bellevue Healthcare Trust is 1.23 times less risky than American Express. It trades about 0.0 of its potential returns per unit of risk. American Express Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 14,516 in American Express Co on October 11, 2024 and sell it today you would earn a total of 15,484 from holding American Express Co or generate 106.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. American Express Co
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| American Express |
Bellevue Healthcare and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and American Express
The main advantage of trading using opposite Bellevue Healthcare and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| Bellevue Healthcare vs. SupplyMe Capital PLC | Bellevue Healthcare vs. SM Energy Co | Bellevue Healthcare vs. FuelCell Energy | Bellevue Healthcare vs. Grand Vision Media |
| American Express vs. Omega Healthcare Investors | American Express vs. Bellevue Healthcare Trust | American Express vs. Abingdon Health Plc | American Express vs. Naturhouse Health SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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