Correlation Between Bell Financial and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Bell Financial and Maggie Beer 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 Maggie Beer 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 Maggie Beer Holdings, you can compare the effects of market volatilities on Bell Financial and Maggie Beer 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 Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Financial and Maggie Beer.
Diversification Opportunities for Bell Financial and Maggie Beer
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bell and Maggie is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bell Financial Group and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings 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 Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Bell Financial i.e., Bell Financial and Maggie Beer go up and down completely randomly.
Pair Corralation between Bell Financial and Maggie Beer
Assuming the 90 days trading horizon Bell Financial is expected to generate 5.21 times less return on investment than Maggie Beer. But when comparing it to its historical volatility, Bell Financial Group is 3.41 times less risky than Maggie Beer. It trades about 0.08 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5.70 in Maggie Beer Holdings on November 7, 2024 and sell it today you would earn a total of 0.40 from holding Maggie Beer Holdings or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bell Financial Group vs. Maggie Beer Holdings
Performance |
| Timeline |
| Bell Financial Group |
| Maggie Beer Holdings |
Bell Financial and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Financial and Maggie Beer
The main advantage of trading using opposite Bell Financial and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Financial position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Bell Financial vs. Macquarie Bank Limited | Bell Financial vs. Microequities Asset Management | Bell Financial vs. Auctus Alternative Investments | Bell Financial vs. Wt Financial Group |
| Maggie Beer vs. Mach7 Technologies | Maggie Beer vs. Rare Foods Australia | Maggie Beer vs. Advanced Braking Technology | Maggie Beer vs. Sports Entertainment 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 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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