Correlation Between Aozora Bank and Bet At

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Can any of the company-specific risk be diversified away by investing in both Aozora Bank 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 Aozora Bank and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aozora Bank and bet at home AG, you can compare the effects of market volatilities on Aozora Bank 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 Aozora Bank with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aozora Bank and Bet At.

Diversification Opportunities for Aozora Bank and Bet At

AozoraBetDiversified AwayAozoraBetDiversified Away100%
-0.29
  Correlation Coefficient

Very good diversification

The 3 months correlation between Aozora and Bet is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aozora Bank 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 Aozora Bank 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 Aozora Bank 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 Aozora Bank i.e., Aozora Bank and Bet At go up and down completely randomly.

Pair Corralation between Aozora Bank and Bet At

Assuming the 90 days horizon Aozora Bank is expected to generate 0.38 times more return on investment than Bet At. However, Aozora Bank is 2.62 times less risky than Bet At. It trades about -0.18 of its potential returns per unit of risk. bet at home AG is currently generating about -0.08 per unit of risk. If you would invest  1,450  in Aozora Bank on November 21, 2024 and sell it today you would lose (90.00) from holding Aozora Bank or give up 6.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aozora Bank  vs.  bet at home AG

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15AON ACX
       Timeline  
Aozora Bank 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Aozora Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb13.51414.51515.5
bet at home 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in bet at home AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Bet At may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.32.42.52.62.72.82.93

Aozora Bank and Bet At Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.62-1.99-1.36-0.73-0.09780.461.041.622.22.78 0.050.100.15
JavaScript chart by amCharts 3.21.15AON ACX
       Returns  

Pair Trading with Aozora Bank and Bet At

The main advantage of trading using opposite Aozora Bank and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aozora Bank 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 Aozora Bank 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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