Correlation Between Bellevue Healthcare and Neometals
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Neometals 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 Neometals 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 Neometals, you can compare the effects of market volatilities on Bellevue Healthcare and Neometals 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 Neometals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Neometals.
Diversification Opportunities for Bellevue Healthcare and Neometals
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bellevue and Neometals is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Neometals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neometals 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 Neometals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neometals has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Neometals go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Neometals
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to under-perform the Neometals. But the stock apears to be less risky and, when comparing its historical volatility, Bellevue Healthcare Trust is 3.97 times less risky than Neometals. The stock trades about -0.09 of its potential returns per unit of risk. The Neometals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Neometals on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Neometals or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Neometals
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Neometals |
Bellevue Healthcare and Neometals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Neometals
The main advantage of trading using opposite Bellevue Healthcare and Neometals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Neometals 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 Neometals will offset losses from the drop in Neometals' 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 |
| Neometals vs. DFS Furniture PLC | Neometals vs. MyHealthChecked Plc | Neometals vs. Bellevue Healthcare Trust | Neometals vs. Universal Health Services |
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 CEOs Directory module to screen CEOs from public companies around the world.
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