Correlation Between Bellevue Group and Invesco EQQQ
Can any of the company-specific risk be diversified away by investing in both Bellevue Group and Invesco EQQQ 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 Group and Invesco EQQQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Group AG and Invesco EQQQ NASDAQ 100, you can compare the effects of market volatilities on Bellevue Group and Invesco EQQQ 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 Group with a short position of Invesco EQQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Group and Invesco EQQQ.
Diversification Opportunities for Bellevue Group and Invesco EQQQ
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bellevue and Invesco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Invesco EQQQ NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco EQQQ NASDAQ and Bellevue Group 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 Group AG are associated (or correlated) with Invesco EQQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco EQQQ NASDAQ has no effect on the direction of Bellevue Group i.e., Bellevue Group and Invesco EQQQ go up and down completely randomly.
Pair Corralation between Bellevue Group and Invesco EQQQ
Assuming the 90 days trading horizon Bellevue Group AG is expected to under-perform the Invesco EQQQ. In addition to that, Bellevue Group is 1.87 times more volatile than Invesco EQQQ NASDAQ 100. It trades about -0.1 of its total potential returns per unit of risk. Invesco EQQQ NASDAQ 100 is currently generating about 0.12 per unit of volatility. If you would invest 19,208 in Invesco EQQQ NASDAQ 100 on September 3, 2024 and sell it today you would earn a total of 16,412 from holding Invesco EQQQ NASDAQ 100 or generate 85.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Group AG vs. Invesco EQQQ NASDAQ 100
Performance |
| Timeline |
| Bellevue Group AG |
| Invesco EQQQ NASDAQ |
Bellevue Group and Invesco EQQQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Group and Invesco EQQQ
The main advantage of trading using opposite Bellevue Group and Invesco EQQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Group position performs unexpectedly, Invesco EQQQ 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 Invesco EQQQ will offset losses from the drop in Invesco EQQQ's long position.| Bellevue Group vs. BB Biotech AG | Bellevue Group vs. Leonteq AG | Bellevue Group vs. Helvetia Holding AG | Bellevue Group vs. EFG International AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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