Correlation Between CPENPO CPEN and Bellevue Group

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

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

Diversification Opportunities for CPENPO CPEN and Bellevue Group

0.0

Correlation Coefficient

CPENPO CPEN  Bellevue Group

Pay attention - limited upside

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

Pair Corralation between CPENPO CPEN and Bellevue Group

If you would invest  1,088  in Bellevue Group AG on December 23, 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

CPENPO CPEN P  vs.  Bellevue Group AG

CPENPO CPEN P

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with CPENPO CPEN and Bellevue Group

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

The idea behind CPENPO CPEN P and Bellevue Group 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.