Correlation Between Covivio Hotels and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Covivio Hotels and BEBO Health 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 Covivio Hotels and BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Covivio Hotels and BEBO Health SA, you can compare the effects of market volatilities on Covivio Hotels and BEBO Health 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 Covivio Hotels with a short position of BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Covivio Hotels and BEBO Health.
Diversification Opportunities for Covivio Hotels and BEBO Health
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Covivio and BEBO is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Covivio Hotels and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA and Covivio Hotels 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 Covivio Hotels are associated (or correlated) with BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Covivio Hotels i.e., Covivio Hotels and BEBO Health go up and down completely randomly.
Pair Corralation between Covivio Hotels and BEBO Health
If you would invest 1,850 in Covivio Hotels on September 25, 2024 and sell it today you would earn a total of 180.00 from holding Covivio Hotels or generate 9.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Covivio Hotels vs. BEBO Health SA
Performance |
Timeline |
Covivio Hotels |
BEBO Health SA |
Covivio Hotels and BEBO Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Covivio Hotels and BEBO Health
The main advantage of trading using opposite Covivio Hotels and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Covivio Hotels position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.Covivio Hotels vs. TotalEnergies SE | Covivio Hotels vs. LVMH Mot Hennessy | Covivio Hotels vs. Christian Dior SE | Covivio Hotels vs. BNP Paribas SA |
BEBO Health vs. Exail Technologies SA | BEBO Health vs. Invibes Advertising NV | BEBO Health vs. FNP Technologies SA | BEBO Health vs. Lexibook Linguistic Electronic |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |