Correlation Between Bellevue Healthcare and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Baker Hughes 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 Baker Hughes 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 Baker Hughes Co, you can compare the effects of market volatilities on Bellevue Healthcare and Baker Hughes 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 Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Baker Hughes.
Diversification Opportunities for Bellevue Healthcare and Baker Hughes
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bellevue and Baker is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes 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 Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Baker Hughes go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Baker Hughes
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 1.04 times more return on investment than Baker Hughes. However, Bellevue Healthcare is 1.04 times more volatile than Baker Hughes Co. It trades about 0.02 of its potential returns per unit of risk. Baker Hughes Co is currently generating about -0.08 per unit of risk. If you would invest 13,960 in Bellevue Healthcare Trust on September 13, 2024 and sell it today you would earn a total of 80.00 from holding Bellevue Healthcare Trust or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Baker Hughes Co
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Baker Hughes |
Bellevue Healthcare and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Baker Hughes
The main advantage of trading using opposite Bellevue Healthcare and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.| Bellevue Healthcare vs. Dalata Hotel Group | Bellevue Healthcare vs. St Galler Kantonalbank | Bellevue Healthcare vs. Naked Wines plc | Bellevue Healthcare vs. Wyndham Hotels Resorts |
| Baker Hughes vs. Samsung Electronics Co | Baker Hughes vs. Samsung Electronics Co | Baker Hughes vs. Hyundai Motor | Baker Hughes vs. Reliance Industries Ltd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |