Correlation Between Bellevue Group and Nebag Ag
Can any of the company-specific risk be diversified away by investing in both Bellevue Group and Nebag Ag 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 Nebag Ag 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 Nebag ag, you can compare the effects of market volatilities on Bellevue Group and Nebag Ag 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 Nebag Ag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Group and Nebag Ag.
Diversification Opportunities for Bellevue Group and Nebag Ag
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bellevue and Nebag is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Nebag ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebag ag 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 Nebag Ag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebag ag has no effect on the direction of Bellevue Group i.e., Bellevue Group and Nebag Ag go up and down completely randomly.
Pair Corralation between Bellevue Group and Nebag Ag
Assuming the 90 days trading horizon Bellevue Group AG is expected to under-perform the Nebag Ag. In addition to that, Bellevue Group is 1.81 times more volatile than Nebag ag. It trades about -0.53 of its total potential returns per unit of risk. Nebag ag is currently generating about -0.08 per unit of volatility. If you would invest 660.00 in Nebag ag on September 1, 2024 and sell it today you would lose (10.00) from holding Nebag ag or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bellevue Group AG vs. Nebag ag
Performance |
| Timeline |
| Bellevue Group AG |
| Nebag ag |
Bellevue Group and Nebag Ag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Group and Nebag Ag
The main advantage of trading using opposite Bellevue Group and Nebag Ag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Group position performs unexpectedly, Nebag Ag 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 Nebag Ag will offset losses from the drop in Nebag Ag'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 |
| Nebag Ag vs. Bachem Holding AG | Nebag Ag vs. Kudelski | Nebag Ag vs. Alpine Select AG | Nebag Ag vs. BB Biotech 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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