Correlation Between Jupiter Energy and Bet-at-home

Can any of the company-specific risk be diversified away by investing in both Jupiter Energy 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 Jupiter Energy 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 Jupiter Energy Limited and bet at home AG, you can compare the effects of market volatilities on Jupiter Energy 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 Jupiter Energy with a short position of Bet-at-home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Energy and Bet-at-home.

Diversification Opportunities for Jupiter Energy and Bet-at-home

0.26

Correlation Coefficient

Jupiter Energy  Bet-at-home

Modest diversification

The 3 months correlation between Jupiter and Bet-at-home is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Energy Limited 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 Jupiter Energy 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 Jupiter Energy Limited 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 Jupiter Energy i.e., Jupiter Energy and Bet-at-home go up and down completely randomly.

Pair Corralation between Jupiter Energy and Bet-at-home

Assuming the 90 days horizon Jupiter Energy Limited is expected to generate 8.89 times more return on investment than Bet-at-home. However, Jupiter Energy is 8.89 times more volatile than bet at home AG. It trades about 0.14 of its potential returns per unit of risk. bet at home AG is currently generating about 0.06 per unit of risk. If you would invest  1.10  in Jupiter Energy Limited on December 22, 2024 and sell it today you would earn a total of  0.30  from holding Jupiter Energy Limited or generate 27.27% return on investment over 90 days.

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

Jupiter Energy Limited  vs.  bet at home AG

Jupiter Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Energy Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jupiter Energy reported solid returns over the last few months and may actually be approaching a breakup point.

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 comparatively fragile basic indicators, Bet-at-home unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jupiter Energy and Bet-at-home

The main advantage of trading using opposite Jupiter Energy and Bet-at-home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Energy 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 Jupiter Energy Limited 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..