Correlation Between EastGroup Properties and Bellevue Life
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties and Bellevue Life 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 EastGroup Properties and Bellevue Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Bellevue Life Sciences, you can compare the effects of market volatilities on EastGroup Properties and Bellevue Life 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 EastGroup Properties with a short position of Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Bellevue Life.
Diversification Opportunities for EastGroup Properties and Bellevue Life
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EastGroup and Bellevue is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Bellevue Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Life Sciences and EastGroup Properties 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 EastGroup Properties are associated (or correlated) with Bellevue Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Life Sciences has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and Bellevue Life go up and down completely randomly.
Pair Corralation between EastGroup Properties and Bellevue Life
Considering the 90-day investment horizon EastGroup Properties is expected to generate 51.94 times less return on investment than Bellevue Life. But when comparing it to its historical volatility, EastGroup Properties is 35.46 times less risky than Bellevue Life. It trades about 0.03 of its potential returns per unit of risk. Bellevue Life Sciences is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Bellevue Life Sciences on August 30, 2024 and sell it today you would earn a total of 1,126 from holding Bellevue Life Sciences or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.87% |
| Values | Daily Returns |
EastGroup Properties vs. Bellevue Life Sciences
Performance |
| Timeline |
| EastGroup Properties |
| Bellevue Life Sciences |
EastGroup Properties and Bellevue Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Bellevue Life
The main advantage of trading using opposite EastGroup Properties and Bellevue Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties position performs unexpectedly, Bellevue Life 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 Bellevue Life will offset losses from the drop in Bellevue Life's long position.| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
| Bellevue Life vs. Inflection Point Acquisition | Bellevue Life vs. EastGroup Properties | Bellevue Life vs. FTAI Aviation Ltd | Bellevue Life vs. Broadstone Net Lease |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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