Correlation Between Bellevue Group and Private Equity

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

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

Diversification Opportunities for Bellevue Group and Private Equity

-0.7

Correlation Coefficient

Bellevue Group  Private Equity

Excellent diversification

The 3 months correlation between Bellevue and Private is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Private Equity Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Private Equity Holding and Bellevue 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 Bellevue Group AG are associated (or correlated) with Private Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Private Equity Holding has no effect on the direction of Bellevue Group i.e., Bellevue Group and Private Equity go up and down completely randomly.

Pair Corralation between Bellevue Group and Private Equity

Assuming the 90 days trading horizon Bellevue Group AG is expected to under-perform the Private Equity. In addition to that, Bellevue Group is 1.59 times more volatile than Private Equity Holding. It trades about -0.08 of its total potential returns per unit of risk. Private Equity Holding is currently generating about 0.15 per unit of volatility. If you would invest  6,860  in Private Equity Holding on March 4, 2024 and sell it today you would earn a total of  820.00  from holding Private Equity Holding or generate 11.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

Bellevue Group AG  vs.  Private Equity Holding

Bellevue Group AG

Risk-Adjusted Performance

0 of 100

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 latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Private Equity Holding

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Private Equity Holding are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Private Equity showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bellevue Group and Private Equity

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

The idea behind Bellevue Group AG and Private Equity Holding 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.