Correlation Between Bellevue Healthcare and Sydbank

Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Sydbank 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 Bellevue Healthcare and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bellevue Healthcare Trust and Sydbank, you can compare the effects of market volatilities on Bellevue Healthcare and Sydbank 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 Bellevue Healthcare with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Sydbank.

Diversification Opportunities for Bellevue Healthcare and Sydbank

-0.92

Correlation Coefficient

Bellevue Healthcare  Sydbank

Pay attention - limited upside

The 3 months correlation between Bellevue and Sydbank is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Bellevue Healthcare 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 Bellevue Healthcare Trust are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Sydbank go up and down completely randomly.

Pair Corralation between Bellevue Healthcare and Sydbank

Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to under-perform the Sydbank. But the stock apears to be less risky and, when comparing its historical volatility, Bellevue Healthcare Trust is 1.35 times less risky than Sydbank. The stock trades about -0.18 of its potential returns per unit of risk. The Sydbank is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  35,711  in Sydbank on December 29, 2024 and sell it today you would earn a total of  8,019  from holding Sydbank or generate 22.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bellevue Healthcare Trust  vs.  Sydbank

Bellevue Healthcare Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bellevue Healthcare Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Sydbank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Sydbank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bellevue Healthcare and Sydbank

The main advantage of trading using opposite Bellevue Healthcare and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.

The idea behind Bellevue Healthcare Trust and Sydbank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.