Correlation Between Kingswood Acquisition and Bellevue Life
Can any of the company-specific risk be diversified away by investing in both Kingswood Acquisition 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 Kingswood Acquisition and Bellevue Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingswood Acquisition Corp and Bellevue Life Sciences, you can compare the effects of market volatilities on Kingswood Acquisition 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 Kingswood Acquisition with a short position of Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingswood Acquisition and Bellevue Life.
Diversification Opportunities for Kingswood Acquisition and Bellevue Life
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kingswood and Bellevue is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kingswood Acquisition Corp 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 Kingswood Acquisition 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 Kingswood Acquisition Corp 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 Kingswood Acquisition i.e., Kingswood Acquisition and Bellevue Life go up and down completely randomly.
Pair Corralation between Kingswood Acquisition and Bellevue Life
If you would invest 1,083 in Bellevue Life Sciences on October 22, 2024 and sell it today you would earn a total of 52.00 from holding Bellevue Life Sciences or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Kingswood Acquisition Corp vs. Bellevue Life Sciences
Performance |
| Timeline |
| Kingswood Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bellevue Life Sciences |
Kingswood Acquisition and Bellevue Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingswood Acquisition and Bellevue Life
The main advantage of trading using opposite Kingswood Acquisition and Bellevue Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingswood Acquisition 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.The idea behind Kingswood Acquisition Corp and Bellevue Life Sciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bellevue Life vs. Radcom | Bellevue Life vs. RBC Bearings Incorporated | Bellevue Life vs. Everus Construction Group | Bellevue Life vs. Skechers USA |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |