Correlation Between Belo Sun and Profound Medical
Can any of the company-specific risk be diversified away by investing in both Belo Sun and Profound Medical 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 Belo Sun and Profound Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belo Sun Mining and Profound Medical Corp, you can compare the effects of market volatilities on Belo Sun and Profound Medical 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 Belo Sun with a short position of Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belo Sun and Profound Medical.
Diversification Opportunities for Belo Sun and Profound Medical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Belo and Profound is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Belo Sun Mining and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical Corp and Belo Sun 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 Belo Sun Mining are associated (or correlated) with Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of Belo Sun i.e., Belo Sun and Profound Medical go up and down completely randomly.
Pair Corralation between Belo Sun and Profound Medical
Assuming the 90 days trading horizon Belo Sun Mining is expected to generate 0.99 times more return on investment than Profound Medical. However, Belo Sun Mining is 1.01 times less risky than Profound Medical. It trades about 0.21 of its potential returns per unit of risk. Profound Medical Corp is currently generating about 0.15 per unit of risk. If you would invest 27.00 in Belo Sun Mining on September 2, 2025 and sell it today you would earn a total of 20.00 from holding Belo Sun Mining or generate 74.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belo Sun Mining vs. Profound Medical Corp
Performance |
| Timeline |
| Belo Sun Mining |
| Profound Medical Corp |
Belo Sun and Profound Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belo Sun and Profound Medical
The main advantage of trading using opposite Belo Sun and Profound Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belo Sun position performs unexpectedly, Profound Medical 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 Profound Medical will offset losses from the drop in Profound Medical's long position.| Belo Sun vs. Profound Medical Corp | Belo Sun vs. Uniserve Communications Corp | Belo Sun vs. North American Construction | Belo Sun vs. Falcon Energy Materials |
| Profound Medical vs. Advent Wireless | Profound Medical vs. Falcon Energy Materials | Profound Medical vs. Data Communications Management | Profound Medical vs. E L Financial Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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