Correlation Between Bellevue Group and Norinvest Holding

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

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

Diversification Opportunities for Bellevue Group and Norinvest Holding

0.0

Correlation Coefficient

Bellevue Group  Norinvest Holding

Pay attention - limited upside

The 3 months correlation between Bellevue and Norinvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Norinvest Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norinvest Holding and Bellevue Group 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 Group AG are associated (or correlated) with Norinvest Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norinvest Holding has no effect on the direction of Bellevue Group i.e., Bellevue Group and Norinvest Holding go up and down completely randomly.

Pair Corralation between Bellevue Group and Norinvest Holding

If you would invest  1,084  in Bellevue Group AG on December 24, 2024 and sell it today you would lose (19.00) from holding Bellevue Group AG or give up 1.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bellevue Group AG  vs.  Norinvest Holding SA

Bellevue Group AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bellevue Group AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bellevue Group is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Norinvest Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Norinvest Holding SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, Norinvest Holding is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Bellevue Group and Norinvest Holding

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

The idea behind Bellevue Group AG and Norinvest Holding SA 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.