Correlation Between Bellevue Healthcare and SANTANDER
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and SANTANDER 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 SANTANDER 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 SANTANDER UK 8, you can compare the effects of market volatilities on Bellevue Healthcare and SANTANDER 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 SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and SANTANDER.
Diversification Opportunities for Bellevue Healthcare and SANTANDER
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and SANTANDER is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and SANTANDER UK 8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 8 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 SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 8 has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and SANTANDER go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and SANTANDER
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 5.0 times more return on investment than SANTANDER. However, Bellevue Healthcare is 5.0 times more volatile than SANTANDER UK 8. It trades about 0.02 of its potential returns per unit of risk. SANTANDER UK 8 is currently generating about -0.17 per unit of risk. If you would invest 14,400 in Bellevue Healthcare Trust on October 24, 2024 and sell it today you would earn a total of 120.00 from holding Bellevue Healthcare Trust or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. SANTANDER UK 8
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| SANTANDER UK 8 |
Bellevue Healthcare and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and SANTANDER
The main advantage of trading using opposite Bellevue Healthcare and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, SANTANDER 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 SANTANDER will offset losses from the drop in SANTANDER's long position.| Bellevue Healthcare vs. URU Metals | Bellevue Healthcare vs. Wizz Air Holdings | Bellevue Healthcare vs. Finnair Oyj | Bellevue Healthcare vs. Systemair AB |
| SANTANDER vs. Worldwide Healthcare Trust | SANTANDER vs. Planet Fitness Cl | SANTANDER vs. Mobile Tornado Group | SANTANDER vs. Bellevue Healthcare Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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