Correlation Between EVE Health and BHP Group
Can any of the company-specific risk be diversified away by investing in both EVE Health and BHP Group 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 EVE Health and BHP Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVE Health Group and BHP Group Limited, you can compare the effects of market volatilities on EVE Health and BHP Group 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 EVE Health with a short position of BHP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVE Health and BHP Group.
Diversification Opportunities for EVE Health and BHP Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EVE and BHP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EVE Health Group and BHP Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group Limited and EVE Health 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 EVE Health Group are associated (or correlated) with BHP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group Limited has no effect on the direction of EVE Health i.e., EVE Health and BHP Group go up and down completely randomly.
Pair Corralation between EVE Health and BHP Group
If you would invest 3,996 in BHP Group Limited on November 3, 2024 and sell it today you would lose (1.00) from holding BHP Group Limited or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVE Health Group vs. BHP Group Limited
Performance |
| Timeline |
| EVE Health Group |
| BHP Group Limited |
EVE Health and BHP Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVE Health and BHP Group
The main advantage of trading using opposite EVE Health and BHP Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVE Health position performs unexpectedly, BHP Group 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 BHP Group will offset losses from the drop in BHP Group's long position.| EVE Health vs. Energy Technologies Limited | EVE Health vs. Metals X | EVE Health vs. Hansen Technologies | EVE Health vs. Aeon Metals |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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