Correlation Between Aozora Bank and Bet At
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
-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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aozora Bank vs. bet at home AG
Performance |
Timeline |
Aozora Bank |
bet at home |
Aozora Bank and Bet At Volatility Contrast
Predicted Return Density |
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.Aozora Bank vs. Fast Retailing Co | ||
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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