Correlation Between Bell Financial and Clime Investment
Can any of the company-specific risk be diversified away by investing in both Bell Financial and Clime Investment 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 Bell Financial and Clime Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Financial Group and Clime Investment Management, you can compare the effects of market volatilities on Bell Financial and Clime Investment 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 Bell Financial with a short position of Clime Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Financial and Clime Investment.
Diversification Opportunities for Bell Financial and Clime Investment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bell and Clime is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bell Financial Group and Clime Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clime Investment Man and Bell Financial 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 Bell Financial Group are associated (or correlated) with Clime Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clime Investment Man has no effect on the direction of Bell Financial i.e., Bell Financial and Clime Investment go up and down completely randomly.
Pair Corralation between Bell Financial and Clime Investment
Assuming the 90 days trading horizon Bell Financial Group is expected to generate 0.85 times more return on investment than Clime Investment. However, Bell Financial Group is 1.17 times less risky than Clime Investment. It trades about 0.05 of its potential returns per unit of risk. Clime Investment Management is currently generating about -0.02 per unit of risk. If you would invest 86.00 in Bell Financial Group on September 26, 2024 and sell it today you would earn a total of 47.00 from holding Bell Financial Group or generate 54.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell Financial Group vs. Clime Investment Management
Performance |
| Timeline |
| Bell Financial Group |
| Clime Investment Man |
Bell Financial and Clime Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Financial and Clime Investment
The main advantage of trading using opposite Bell Financial and Clime Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Financial position performs unexpectedly, Clime Investment 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 Clime Investment will offset losses from the drop in Clime Investment's long position.| Bell Financial vs. Aneka Tambang Tbk | Bell Financial vs. Commonwealth Bank | Bell Financial vs. Commonwealth Bank of | Bell Financial vs. Australia and New |
| Clime Investment vs. Qbe Insurance Group | Clime Investment vs. Ainsworth Game Technology | Clime Investment vs. Commonwealth Bank of | Clime Investment vs. Bell Financial Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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