Correlation Between Jardine Matheson and Bet At

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jardine Matheson 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 Jardine Matheson and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jardine Matheson Holdings and bet at home AG, you can compare the effects of market volatilities on Jardine Matheson 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 Jardine Matheson with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jardine Matheson and Bet At.

Diversification Opportunities for Jardine Matheson and Bet At

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Jardine and Bet is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jardine Matheson Holdings 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 Jardine Matheson 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 Jardine Matheson Holdings 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 Jardine Matheson i.e., Jardine Matheson and Bet At go up and down completely randomly.

Pair Corralation between Jardine Matheson and Bet At

Assuming the 90 days horizon Jardine Matheson Holdings is expected to generate 0.85 times more return on investment than Bet At. However, Jardine Matheson Holdings is 1.17 times less risky than Bet At. It trades about 0.1 of its potential returns per unit of risk. bet at home AG is currently generating about -0.18 per unit of risk. If you would invest  3,544  in Jardine Matheson Holdings on October 8, 2024 and sell it today you would earn a total of  418.00  from holding Jardine Matheson Holdings or generate 11.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Jardine Matheson Holdings  vs.  bet at home AG

 Performance 
       Timeline  
Jardine Matheson Holdings 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jardine Matheson Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Jardine Matheson reported solid returns over the last few months and may actually be approaching a breakup point.
bet at home 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Jardine Matheson and Bet At Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jardine Matheson and Bet At

The main advantage of trading using opposite Jardine Matheson and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jardine Matheson 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 Jardine Matheson Holdings 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.
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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences