Correlation Between Bellevue Group and Vontobel Holding
Can any of the company-specific risk be diversified away by investing in both Bellevue Group and Vontobel Holding 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 Vontobel Holding 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 Vontobel Holding, you can compare the effects of market volatilities on Bellevue Group and Vontobel Holding 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 Vontobel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Group and Vontobel Holding.
Diversification Opportunities for Bellevue Group and Vontobel Holding
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bellevue and Vontobel is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel Holding 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 Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Bellevue Group i.e., Bellevue Group and Vontobel Holding go up and down completely randomly.
Pair Corralation between Bellevue Group and Vontobel Holding
Assuming the 90 days trading horizon Bellevue Group AG is expected to generate 3.75 times more return on investment than Vontobel Holding. However, Bellevue Group is 3.75 times more volatile than Vontobel Holding. It trades about 0.23 of its potential returns per unit of risk. Vontobel Holding is currently generating about 0.22 per unit of risk. If you would invest 1,145 in Bellevue Group AG on November 5, 2024 and sell it today you would earn a total of 205.00 from holding Bellevue Group AG or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Group AG vs. Vontobel Holding
Performance |
| Timeline |
| Bellevue Group AG |
| Vontobel Holding |
Bellevue Group and Vontobel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Group and Vontobel Holding
The main advantage of trading using opposite Bellevue Group and Vontobel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Group position performs unexpectedly, Vontobel Holding 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 Vontobel Holding will offset losses from the drop in Vontobel Holding'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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