Correlation Between Bell Financial and Group 6
Can any of the company-specific risk be diversified away by investing in both Bell Financial and Group 6 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 Bell Financial and Group 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Financial Group and Group 6 Metals, you can compare the effects of market volatilities on Bell Financial and Group 6 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 Bell Financial with a short position of Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Financial and Group 6.
Diversification Opportunities for Bell Financial and Group 6
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bell and Group is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bell Financial Group and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals and Bell Financial 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 Bell Financial Group are associated (or correlated) with Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Bell Financial i.e., Bell Financial and Group 6 go up and down completely randomly.
Pair Corralation between Bell Financial and Group 6
If you would invest 131.00 in Bell Financial Group on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Bell Financial Group or generate 2.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bell Financial Group vs. Group 6 Metals
Performance |
Timeline |
Bell Financial Group |
Group 6 Metals |
Bell Financial and Group 6 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bell Financial and Group 6
The main advantage of trading using opposite Bell Financial and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Financial position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.Bell Financial vs. Retail Food Group | Bell Financial vs. Fisher Paykel Healthcare | Bell Financial vs. Austco Healthcare | Bell Financial vs. Healthco Healthcare and |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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