Correlation Between OK Business and BEBO Health
Can any of the company-specific risk be diversified away by investing in both OK Business and BEBO Health 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 OK Business and BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OK Business Properties and BEBO Health SA, you can compare the effects of market volatilities on OK Business and BEBO Health 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 OK Business with a short position of BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of OK Business and BEBO Health.
Diversification Opportunities for OK Business and BEBO Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MLOKP and BEBO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OK Business Properties and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA and OK Business 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 OK Business Properties are associated (or correlated) with BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of OK Business i.e., OK Business and BEBO Health go up and down completely randomly.
Pair Corralation between OK Business and BEBO Health
If you would invest 1,160 in OK Business Properties on August 26, 2024 and sell it today you would earn a total of 0.00 from holding OK Business Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 15.61% |
| Values | Daily Returns |
OK Business Properties vs. BEBO Health SA
Performance |
| Timeline |
| OK Business Properties |
| BEBO Health SA |
OK Business and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OK Business and BEBO Health
The main advantage of trading using opposite OK Business and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OK Business position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.| OK Business vs. BEBO Health SA | OK Business vs. Axway Software | OK Business vs. ISPD Network SA | OK Business vs. Covivio Hotels |
| BEBO Health vs. Groupe Partouche SA | BEBO Health vs. Gevelot | BEBO Health vs. Plastiques du Val | BEBO Health vs. Trilogiq |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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