Correlation Between Belysse Group and Ion Beam

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

By analyzing existing cross correlation between Belysse Group NV and Ion Beam Applications, you can compare the effects of market volatilities on Belysse Group and Ion Beam 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 Belysse Group with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belysse Group and Ion Beam.

Diversification Opportunities for Belysse Group and Ion Beam

0.15

Correlation Coefficient

Belysse Group  Ion Beam

Average diversification

The 3 months correlation between Belysse and Ion is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Belysse Group NV and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Belysse Group 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 Belysse Group NV are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Belysse Group i.e., Belysse Group and Ion Beam go up and down completely randomly.

Pair Corralation between Belysse Group and Ion Beam

Assuming the 90 days trading horizon Belysse Group NV is expected to under-perform the Ion Beam. In addition to that, Belysse Group is 1.37 times more volatile than Ion Beam Applications. It trades about -0.39 of its total potential returns per unit of risk. Ion Beam Applications is currently generating about 0.04 per unit of volatility. If you would invest  1,274  in Ion Beam Applications on September 19, 2024 and sell it today you would earn a total of  18.00  from holding Ion Beam Applications or generate 1.41% return on investment over 90 days.

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

Belysse Group NV  vs.  Ion Beam Applications

Belysse Group NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Belysse Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ion Beam Applications

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ion Beam Applications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ion Beam is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Belysse Group and Ion Beam

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

The idea behind Belysse Group NV and Ion Beam Applications 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.