Correlation Between IShares Global and Bellevue Group
Can any of the company-specific risk be diversified away by investing in both IShares Global and Bellevue Group 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 IShares Global and Bellevue Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Timber and Bellevue Group AG, you can compare the effects of market volatilities on IShares Global and Bellevue Group 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 IShares Global with a short position of Bellevue Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Bellevue Group.
Diversification Opportunities for IShares Global and Bellevue Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Bellevue is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Timber and Bellevue Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Group AG and IShares Global 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 iShares Global Timber are associated (or correlated) with Bellevue Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Group AG has no effect on the direction of IShares Global i.e., IShares Global and Bellevue Group go up and down completely randomly.
Pair Corralation between IShares Global and Bellevue Group
Assuming the 90 days trading horizon iShares Global Timber is expected to under-perform the Bellevue Group. But the etf apears to be less risky and, when comparing its historical volatility, iShares Global Timber is 2.1 times less risky than Bellevue Group. The etf trades about -0.15 of its potential returns per unit of risk. The Bellevue Group AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Bellevue Group AG on December 1, 2024 and sell it today you would earn a total of 25.00 from holding Bellevue Group AG or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
iShares Global Timber vs. Bellevue Group AG
Performance |
| Timeline |
| iShares Global Timber |
| Bellevue Group AG |
IShares Global and Bellevue Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and Bellevue Group
The main advantage of trading using opposite IShares Global and Bellevue Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, Bellevue Group 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 Group will offset losses from the drop in Bellevue Group's long position.| IShares Global vs. iShares Corp Bond | IShares Global vs. iShares Emerging Asia | IShares Global vs. iShares MSCI Global | IShares Global vs. iShares VII PLC |
| Bellevue Group vs. BB Biotech AG | Bellevue Group vs. Leonteq AG | Bellevue Group vs. Helvetia Holding AG | Bellevue Group vs. EFG International AG |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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