Correlation Between Bemobi Mobile and Healthcare Realty

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

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

Diversification Opportunities for Bemobi Mobile and Healthcare Realty

-0.23

Correlation Coefficient

Bemobi Mobile  Healthcare Realty

Very good diversification

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

Pair Corralation between Bemobi Mobile and Healthcare Realty

Assuming the 90 days trading horizon Bemobi Mobile Tech is expected to under-perform the Healthcare Realty. In addition to that, Bemobi Mobile is 2.31 times more volatile than Healthcare Realty Trust. It trades about -0.12 of its total potential returns per unit of risk. Healthcare Realty Trust is currently generating about -0.25 per unit of volatility. If you would invest  2,718  in Healthcare Realty Trust on October 8, 2024 and sell it today you would lose (173.00) from holding Healthcare Realty Trust or give up 6.36% of portfolio value over 90 days.

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

Bemobi Mobile Tech  vs.  Healthcare Realty Trust

Bemobi Mobile Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bemobi Mobile Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bemobi Mobile is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Healthcare Realty Trust

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Healthcare Realty Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Healthcare Realty may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Bemobi Mobile and Healthcare Realty

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

The idea behind Bemobi Mobile Tech and Healthcare Realty Trust 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.