Correlation Between Bet-at-home and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and CENTURIA OFFICE 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-home and CENTURIA OFFICE 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 CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Bet-at-home and CENTURIA OFFICE 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-home with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and CENTURIA OFFICE.
Diversification Opportunities for Bet-at-home and CENTURIA OFFICE
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bet-at-home and CENTURIA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT and Bet-at-home 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 CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of Bet-at-home i.e., Bet-at-home and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Bet-at-home and CENTURIA OFFICE
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the CENTURIA OFFICE. In addition to that, Bet-at-home is 1.24 times more volatile than CENTURIA OFFICE REIT. It trades about -0.17 of its total potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about -0.11 per unit of volatility. If you would invest 72.00 in CENTURIA OFFICE REIT on September 24, 2024 and sell it today you would lose (8.00) from holding CENTURIA OFFICE REIT or give up 11.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
bet at home AG vs. CENTURIA OFFICE REIT
Performance |
Timeline |
bet at home |
CENTURIA OFFICE REIT |
Bet-at-home and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bet-at-home and CENTURIA OFFICE
The main advantage of trading using opposite Bet-at-home and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Microsoft |
CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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