Correlation Between Investcorp Europe and Bellevue Life

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

By analyzing existing cross correlation between Investcorp Europe Acquisition and Bellevue Life Sciences, you can compare the effects of market volatilities on Investcorp Europe and Bellevue Life 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 Investcorp Europe with a short position of Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Europe and Bellevue Life.

Diversification Opportunities for Investcorp Europe and Bellevue Life

0.0

Correlation Coefficient

Investcorp Europe  Bellevue Life

Pay attention - limited upside

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

Pair Corralation between Investcorp Europe and Bellevue Life

Given the investment horizon of 90 days Investcorp Europe Acquisition is expected to under-perform the Bellevue Life. In addition to that, Investcorp Europe is 2.29 times more volatile than Bellevue Life Sciences. It trades about 0.0 of its total potential returns per unit of risk. Bellevue Life Sciences is currently generating about 0.04 per unit of volatility. If you would invest  1,094  in Bellevue Life Sciences on October 21, 2024 and sell it today you would earn a total of  41.00  from holding Bellevue Life Sciences or generate 3.75% return on investment over 90 days.

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

Investcorp Europe Acquisition  vs.  Bellevue Life Sciences

Investcorp Europe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Investcorp Europe Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Investcorp Europe is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bellevue Life Sciences

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bellevue Life Sciences are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Bellevue Life is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Investcorp Europe and Bellevue Life

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

The idea behind Investcorp Europe Acquisition and Bellevue Life Sciences 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 CEOs Directory module to screen CEOs from public companies around the world.