Correlation Between Bellevue Healthcare and Golden Metal
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Golden Metal 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 Golden Metal 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 Golden Metal Resources, you can compare the effects of market volatilities on Bellevue Healthcare and Golden Metal 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 Golden Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Golden Metal.
Diversification Opportunities for Bellevue Healthcare and Golden Metal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bellevue and Golden is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Golden Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Metal Resources 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 Golden Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Metal Resources has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Golden Metal go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Golden Metal
Assuming the 90 days trading horizon Bellevue Healthcare is expected to generate 510.35 times less return on investment than Golden Metal. But when comparing it to its historical volatility, Bellevue Healthcare Trust is 39.32 times less risky than Golden Metal. It trades about 0.0 of its potential returns per unit of risk. Golden Metal Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Golden Metal Resources on September 2, 2024 and sell it today you would earn a total of 3,041 from holding Golden Metal Resources or generate 33788.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.2% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Golden Metal Resources
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Golden Metal Resources |
Bellevue Healthcare and Golden Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Golden Metal
The main advantage of trading using opposite Bellevue Healthcare and Golden Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Golden Metal 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 Golden Metal will offset losses from the drop in Golden Metal's long position.| Bellevue Healthcare vs. Virgin Wines UK | Bellevue Healthcare vs. Roebuck Food Group | Bellevue Healthcare vs. Leroy Seafood Group | Bellevue Healthcare vs. Flow Traders NV |
| Golden Metal vs. Fevertree Drinks Plc | Golden Metal vs. Ion Beam Applications | Golden Metal vs. Fidelity National Information | Golden Metal vs. Batm Advanced Communications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |