Correlation Between Marine Products and Bellevue Life
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and Bellevue Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Bellevue Life Sciences, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Bellevue Life.
Diversification Opportunities for Marine Products and Bellevue Life
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marine and Bellevue is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products 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 Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and Bellevue Life go up and down completely randomly.
Pair Corralation between Marine Products and Bellevue Life
Considering the 90-day investment horizon Marine Products is expected to generate 341.97 times less return on investment than Bellevue Life. But when comparing it to its historical volatility, Marine Products is 31.19 times less risky than Bellevue Life. It trades about 0.01 of its potential returns per unit of risk. Bellevue Life Sciences is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Bellevue Life Sciences on September 14, 2024 and sell it today you would earn a total of 4.50 from holding Bellevue Life Sciences or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 35.02% |
| Values | Daily Returns |
Marine Products vs. Bellevue Life Sciences
Performance |
| Timeline |
| Marine Products |
| Bellevue Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Marine Products and Bellevue Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Bellevue Life
The main advantage of trading using opposite Marine Products and Bellevue Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| Bellevue Life vs. PACCAR Inc | Bellevue Life vs. Grupo Televisa SAB | Bellevue Life vs. Marine Products | Bellevue Life vs. Anterix |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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