Correlation Between Oncimmune Holdings and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Oncimmune Holdings and Bellevue Healthcare 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 Oncimmune Holdings and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncimmune Holdings plc and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Oncimmune Holdings and Bellevue Healthcare 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 Oncimmune Holdings with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncimmune Holdings and Bellevue Healthcare.
Diversification Opportunities for Oncimmune Holdings and Bellevue Healthcare
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oncimmune and Bellevue is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Oncimmune Holdings plc and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust and Oncimmune Holdings 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 Oncimmune Holdings plc are associated (or correlated) with Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of Oncimmune Holdings i.e., Oncimmune Holdings and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Oncimmune Holdings and Bellevue Healthcare
Assuming the 90 days trading horizon Oncimmune Holdings plc is expected to under-perform the Bellevue Healthcare. In addition to that, Oncimmune Holdings is 3.74 times more volatile than Bellevue Healthcare Trust. It trades about -0.05 of its total potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about -0.09 per unit of volatility. If you would invest 14,600 in Bellevue Healthcare Trust on August 30, 2024 and sell it today you would lose (560.00) from holding Bellevue Healthcare Trust or give up 3.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Oncimmune Holdings plc vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Oncimmune Holdings plc |
| Bellevue Healthcare Trust |
Oncimmune Holdings and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncimmune Holdings and Bellevue Healthcare
The main advantage of trading using opposite Oncimmune Holdings and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncimmune Holdings position performs unexpectedly, Bellevue Healthcare 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 Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| Oncimmune Holdings vs. Futura Medical | Oncimmune Holdings vs. Teradata Corp | Oncimmune Holdings vs. GlobalData PLC | Oncimmune Holdings vs. Naked Wines plc |
| Bellevue Healthcare vs. AMG Advanced Metallurgical | Bellevue Healthcare vs. Roadside Real Estate | Bellevue Healthcare vs. Axfood AB | Bellevue Healthcare vs. EVS Broadcast Equipment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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