Correlation Between Bellevue Group and Vifor Pharma

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

Diversification Opportunities for Bellevue Group and Vifor Pharma

0.0

Correlation Coefficient

Bellevue Group  Vifor Pharma

Pay attention - limited upside

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

Pair Corralation between Bellevue Group and Vifor Pharma

If you would invest  1,088  in Bellevue Group AG on December 22, 2024 and sell it today you would lose (23.00) from holding Bellevue Group AG or give up 2.11% 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.  Vifor Pharma AG

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.

Vifor Pharma AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vifor Pharma AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Vifor Pharma is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bellevue Group and Vifor Pharma

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

The idea behind Bellevue Group AG and Vifor Pharma 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 Stocks Directory module to find actively traded stocks across global markets.