Correlation Between GoldMining and Bet At

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

By analyzing existing cross correlation between GoldMining and bet at home AG, you can compare the effects of market volatilities on GoldMining and Bet At 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 GoldMining with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Bet At.

Diversification Opportunities for GoldMining and Bet At

0.41

Correlation Coefficient

GoldMining  Bet At

Very weak diversification

The 3 months correlation between GoldMining and Bet is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home and GoldMining 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 GoldMining are associated (or correlated) with Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of GoldMining i.e., GoldMining and Bet At go up and down completely randomly.

Pair Corralation between GoldMining and Bet At

Assuming the 90 days trading horizon GoldMining is expected to under-perform the Bet At. In addition to that, GoldMining is 1.02 times more volatile than bet at home AG. It trades about -0.07 of its total potential returns per unit of risk. bet at home AG is currently generating about -0.04 per unit of volatility. If you would invest  307.00  in bet at home AG on October 15, 2024 and sell it today you would lose (26.00) from holding bet at home AG or give up 8.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	69.35%
Values	Daily Returns

GoldMining  vs.  bet at home AG

GoldMining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GoldMining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with GoldMining and Bet At

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

The idea behind GoldMining and bet at home AG 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.