Correlation Between OC Oerlikon and Bellevue Group
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon 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 OC Oerlikon and Bellevue Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OC Oerlikon Corp and Bellevue Group AG, you can compare the effects of market volatilities on OC Oerlikon 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 OC Oerlikon with a short position of Bellevue Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Bellevue Group.
Diversification Opportunities for OC Oerlikon and Bellevue Group
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OERL and Bellevue is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp 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 OC Oerlikon 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 OC Oerlikon Corp 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 OC Oerlikon i.e., OC Oerlikon and Bellevue Group go up and down completely randomly.
Pair Corralation between OC Oerlikon and Bellevue Group
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to generate 0.64 times more return on investment than Bellevue Group. However, OC Oerlikon Corp is 1.55 times less risky than Bellevue Group. It trades about 0.16 of its potential returns per unit of risk. Bellevue Group AG is currently generating about -0.06 per unit of risk. If you would invest 351.00 in OC Oerlikon Corp on December 30, 2024 and sell it today you would earn a total of 72.00 from holding OC Oerlikon Corp or generate 20.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OC Oerlikon Corp vs. Bellevue Group AG
Performance |
Timeline |
OC Oerlikon Corp |
Bellevue Group AG |
OC Oerlikon and Bellevue Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OC Oerlikon and Bellevue Group
The main advantage of trading using opposite OC Oerlikon and Bellevue Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon 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.OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco Group AG |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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