Correlation Between Bell Buckle and A2 Milk

Can any of the company-specific risk be diversified away by investing in both Bell Buckle and A2 Milk 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 Buckle and A2 Milk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bell Buckle Holdings and The a2 Milk, you can compare the effects of market volatilities on Bell Buckle and A2 Milk 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 Buckle with a short position of A2 Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Buckle and A2 Milk.

Diversification Opportunities for Bell Buckle and A2 Milk

-0.05

Correlation Coefficient

Bell Buckle  A2 Milk

Good diversification

The 3 months correlation between Bell and ACOPF is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bell Buckle Holdings and The a2 Milk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on a2 Milk and Bell Buckle 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 Buckle Holdings are associated (or correlated) with A2 Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of a2 Milk has no effect on the direction of Bell Buckle i.e., Bell Buckle and A2 Milk go up and down completely randomly.

Pair Corralation between Bell Buckle and A2 Milk

Given the investment horizon of 90 days Bell Buckle Holdings is expected to generate 5.35 times more return on investment than A2 Milk. However, Bell Buckle is 5.35 times more volatile than The a2 Milk. It trades about 0.08 of its potential returns per unit of risk. The a2 Milk is currently generating about 0.06 per unit of risk. If you would invest  0.07  in Bell Buckle Holdings on July 30, 2025 and sell it today you would earn a total of  0.01  from holding Bell Buckle Holdings or generate 14.29% return on investment over 90 days.

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

Bell Buckle Holdings  vs.  The a2 Milk

Bell Buckle Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bell Buckle Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile essential indicators, Bell Buckle sustained solid returns over the last few months and may actually be approaching a breakup point.

a2 Milk

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in The a2 Milk are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, A2 Milk may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Bell Buckle and A2 Milk

The main advantage of trading using opposite Bell Buckle and A2 Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Buckle position performs unexpectedly, A2 Milk 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 A2 Milk will offset losses from the drop in A2 Milk's long position.

The idea behind Bell Buckle Holdings and The a2 Milk 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 Global Correlations module to find global opportunities by holding instruments from different markets.