Correlation Between BEBO Health and Bilendi
Can any of the company-specific risk be diversified away by investing in both BEBO Health and Bilendi 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 BEBO Health and Bilendi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEBO Health SA and Bilendi, you can compare the effects of market volatilities on BEBO Health and Bilendi 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 BEBO Health with a short position of Bilendi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEBO Health and Bilendi.
Diversification Opportunities for BEBO Health and Bilendi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BEBO and Bilendi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BEBO Health SA and Bilendi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilendi and BEBO 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 BEBO Health SA are associated (or correlated) with Bilendi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilendi has no effect on the direction of BEBO Health i.e., BEBO Health and Bilendi go up and down completely randomly.
Pair Corralation between BEBO Health and Bilendi
Assuming the 90 days trading horizon BEBO Health SA is expected to under-perform the Bilendi. But the stock apears to be less risky and, when comparing its historical volatility, BEBO Health SA is 1.27 times less risky than Bilendi. The stock trades about -0.06 of its potential returns per unit of risk. The Bilendi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Bilendi on November 28, 2024 and sell it today you would earn a total of 300.00 from holding Bilendi or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.01% |
| Values | Daily Returns |
BEBO Health SA vs. Bilendi
Performance |
| Timeline |
| BEBO Health SA |
| Bilendi |
BEBO Health and Bilendi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEBO Health and Bilendi
The main advantage of trading using opposite BEBO Health and Bilendi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEBO Health position performs unexpectedly, Bilendi 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 Bilendi will offset losses from the drop in Bilendi's long position.| BEBO Health vs. Hotel Majestic Cannes | BEBO Health vs. Gaztransport Technigaz SAS | BEBO Health vs. Sartorius Stedim Biotech | BEBO Health vs. Kaufman Et Broad |
| Bilendi vs. Odyssee Technologies SA | Bilendi vs. Aures Technologies SA | Bilendi vs. Credit Agricole SA | Bilendi vs. Entech SE SAS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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