Correlation Between IShares Corp and Bellevue Group
Can any of the company-specific risk be diversified away by investing in both IShares Corp and Bellevue 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 IShares Corp and Bellevue Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Corp Bond and Bellevue Group AG, you can compare the effects of market volatilities on IShares Corp and Bellevue 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 IShares Corp with a short position of Bellevue Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Corp and Bellevue Group.
Diversification Opportunities for IShares Corp and Bellevue Group
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Bellevue is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding iShares Corp Bond and Bellevue Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Group AG and IShares Corp 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 iShares Corp Bond are associated (or correlated) with Bellevue Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Group AG has no effect on the direction of IShares Corp i.e., IShares Corp and Bellevue Group go up and down completely randomly.
Pair Corralation between IShares Corp and Bellevue Group
Assuming the 90 days trading horizon iShares Corp Bond is expected to generate 0.34 times more return on investment than Bellevue Group. However, iShares Corp Bond is 2.94 times less risky than Bellevue Group. It trades about 0.0 of its potential returns per unit of risk. Bellevue Group AG is currently generating about -0.09 per unit of risk. If you would invest 10,385 in iShares Corp Bond on September 1, 2024 and sell it today you would lose (69.00) from holding iShares Corp Bond or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Corp Bond vs. Bellevue Group AG
Performance |
| Timeline |
| iShares Corp Bond |
| Bellevue Group AG |
IShares Corp and Bellevue Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Corp and Bellevue Group
The main advantage of trading using opposite IShares Corp and Bellevue Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Corp position performs unexpectedly, Bellevue 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 Bellevue Group will offset losses from the drop in Bellevue Group's long position.| IShares Corp vs. iShares Core SP | IShares Corp vs. iShares Core MSCI | IShares Corp vs. Lyxor UCITS Stoxx |
| Bellevue Group vs. BB Biotech AG | Bellevue Group vs. Leonteq AG | Bellevue Group vs. Helvetia Holding AG | Bellevue Group vs. EFG International AG |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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