Correlation Between Bellevue Healthcare and Bytes Technology
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Bytes Technology 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 Bytes Technology 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 Bytes Technology, you can compare the effects of market volatilities on Bellevue Healthcare and Bytes Technology 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 Bytes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Bytes Technology.
Diversification Opportunities for Bellevue Healthcare and Bytes Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and Bytes is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Bytes Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bytes Technology 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 Bytes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bytes Technology has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Bytes Technology go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Bytes Technology
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to under-perform the Bytes Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bellevue Healthcare Trust is 1.88 times less risky than Bytes Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Bytes Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 45,720 in Bytes Technology on November 2, 2024 and sell it today you would earn a total of 340.00 from holding Bytes Technology or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Bytes Technology
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Bytes Technology |
Bellevue Healthcare and Bytes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Bytes Technology
The main advantage of trading using opposite Bellevue Healthcare and Bytes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Bytes Technology 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 Bytes Technology will offset losses from the drop in Bytes Technology's long position.| Bellevue Healthcare vs. SupplyMe Capital PLC | Bellevue Healthcare vs. Premier African Minerals | Bellevue Healthcare vs. SANTANDER UK 8 | Bellevue Healthcare vs. Tower Resources plc |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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