Correlation Between MAVEN WIRELESS and Bet-at-home

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

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

Diversification Opportunities for MAVEN WIRELESS and Bet-at-home

0.36

Correlation Coefficient

MAVEN WIRELESS  Bet-at-home

Weak diversification

The 3 months correlation between MAVEN and Bet-at-home is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with Bet-at-home. 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and Bet-at-home go up and down completely randomly.

Pair Corralation between MAVEN WIRELESS and Bet-at-home

Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the Bet-at-home. In addition to that, MAVEN WIRELESS is 1.46 times more volatile than bet at home AG. It trades about -0.02 of its total potential returns per unit of risk. bet at home AG is currently generating about 0.06 per unit of volatility. If you would invest  255.00  in bet at home AG on December 1, 2024 and sell it today you would earn a total of  21.00  from holding bet at home AG or generate 8.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

MAVEN WIRELESS SWEDEN  vs.  bet at home AG

MAVEN WIRELESS SWEDEN

Risk-Adjusted Performance

Very Weak

Over the last 90 days MAVEN WIRELESS SWEDEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MAVEN WIRELESS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

bet at home

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in bet at home AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Bet-at-home may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with MAVEN WIRELESS and Bet-at-home

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

The idea behind MAVEN WIRELESS SWEDEN 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.