Correlation Between Golden Metal and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Golden Metal and Bellevue Healthcare 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 Golden Metal and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Metal Resources and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Golden Metal and Bellevue Healthcare 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 Golden Metal with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Metal and Bellevue Healthcare.
Diversification Opportunities for Golden Metal and Bellevue Healthcare
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Golden and Bellevue is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Golden Metal Resources and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust and Golden Metal 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 Golden Metal Resources are associated (or correlated) with Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of Golden Metal i.e., Golden Metal and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Golden Metal and Bellevue Healthcare
Assuming the 90 days trading horizon Golden Metal Resources is expected to generate 39.32 times more return on investment than Bellevue Healthcare. However, Golden Metal is 39.32 times more volatile than Bellevue Healthcare Trust. It trades about 0.06 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about 0.0 per unit of risk. If you would invest 9.00 in Golden Metal Resources on September 2, 2024 and sell it today you would earn a total of 3,041 from holding Golden Metal Resources or generate 33788.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.2% |
| Values | Daily Returns |
Golden Metal Resources vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Golden Metal Resources |
| Bellevue Healthcare Trust |
Golden Metal and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Metal and Bellevue Healthcare
The main advantage of trading using opposite Golden Metal and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Metal position performs unexpectedly, Bellevue Healthcare 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 Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| Golden Metal vs. Fevertree Drinks Plc | Golden Metal vs. Ion Beam Applications | Golden Metal vs. Fidelity National Information | Golden Metal vs. Batm Advanced Communications |
| Bellevue Healthcare vs. Virgin Wines UK | Bellevue Healthcare vs. Roebuck Food Group | Bellevue Healthcare vs. Leroy Seafood Group | Bellevue Healthcare vs. Flow Traders NV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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