Correlation Between Bet At and Air Products
Can any of the company-specific risk be diversified away by investing in both Bet At and Air Products 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 Bet At and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and Air Products Chemicals, you can compare the effects of market volatilities on Bet At and Air Products 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 Bet At with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Air Products.
Diversification Opportunities for Bet At and Air Products
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bet and Air is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals and Bet At 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 bet at home AG are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products Chemicals has no effect on the direction of Bet At i.e., Bet At and Air Products go up and down completely randomly.
Pair Corralation between Bet At and Air Products
Assuming the 90 days trading horizon bet at home AG is expected to generate 2.12 times more return on investment than Air Products. However, Bet At is 2.12 times more volatile than Air Products Chemicals. It trades about 0.07 of its potential returns per unit of risk. Air Products Chemicals is currently generating about -0.03 per unit of risk. If you would invest 253.00 in bet at home AG on December 4, 2024 and sell it today you would earn a total of 28.00 from holding bet at home AG or generate 11.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
bet at home AG vs. Air Products Chemicals
Performance |
Timeline |
bet at home |
Air Products Chemicals |
Bet At and Air Products Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bet At and Air Products
The main advantage of trading using opposite Bet At and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.Bet At vs. Silvercorp Metals | Bet At vs. AMG Advanced Metallurgical | Bet At vs. Resolute Mining Limited | Bet At vs. Hochschild Mining plc |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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