Correlation Between Bellevue Group and PHOENIX N

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

Diversification Opportunities for Bellevue Group and PHOENIX N

0.23

Correlation Coefficient

Bellevue Group  PHOENIX N

Modest diversification

The 3 months correlation between Bellevue and PHOENIX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and PHOENIX N AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHOENIX N AG 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 PHOENIX N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHOENIX N AG has no effect on the direction of Bellevue Group i.e., Bellevue Group and PHOENIX N go up and down completely randomly.

Pair Corralation between Bellevue Group and PHOENIX N

Assuming the 90 days trading horizon Bellevue Group AG is expected to generate 0.41 times more return on investment than PHOENIX N. However, Bellevue Group AG is 2.43 times less risky than PHOENIX N. It trades about -0.31 of its potential returns per unit of risk. PHOENIX N AG is currently generating about -0.34 per unit of risk. If you would invest  1,175  in Bellevue Group AG on October 4, 2024 and sell it today you would lose (50.00) from holding Bellevue Group AG or give up 4.26% of portfolio value over 90 days.

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

Bellevue Group AG  vs.  PHOENIX N AG

Bellevue Group AG

Risk-Adjusted Performance

0 of 100

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 abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

PHOENIX N AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PHOENIX N AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Bellevue Group and PHOENIX N

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

The idea behind Bellevue Group AG and PHOENIX N AG 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.