Correlation Between Bellevue Healthcare and Secure Property

Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Secure Property 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 Secure Property 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 Secure Property Development, you can compare the effects of market volatilities on Bellevue Healthcare and Secure Property 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 Secure Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Secure Property.

Diversification Opportunities for Bellevue Healthcare and Secure Property

0.14

Correlation Coefficient

Bellevue Healthcare  Secure Property

Average diversification

The 3 months correlation between Bellevue and Secure is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve 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 Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Secure Property go up and down completely randomly.

Pair Corralation between Bellevue Healthcare and Secure Property

Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 0.81 times more return on investment than Secure Property. However, Bellevue Healthcare Trust is 1.24 times less risky than Secure Property. It trades about -0.07 of its potential returns per unit of risk. Secure Property Development is currently generating about -0.12 per unit of risk. If you would invest  14,720  in Bellevue Healthcare Trust on September 27, 2024 and sell it today you would lose (780.00) from holding Bellevue Healthcare Trust or give up 5.3% of portfolio value over 90 days.

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

Bellevue Healthcare Trust  vs.  Secure Property Development

Bellevue Healthcare Trust

Risk-Adjusted Performance

0 of 100

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 rather sound technical and fundamental indicators, Bellevue Healthcare is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Secure Property Deve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Secure Property Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Bellevue Healthcare and Secure Property

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

The idea behind Bellevue Healthcare Trust and Secure Property Development 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.