Correlation Between Meiko Electronics and Bet-at-home

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

Diversification Opportunities for Meiko Electronics and Bet-at-home

-0.93

Correlation Coefficient

Meiko Electronics  Bet-at-home

Pay attention - limited upside

The 3 months correlation between Meiko and Bet-at-home is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co 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 Meiko Electronics 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 Meiko Electronics Co 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 Meiko Electronics i.e., Meiko Electronics and Bet-at-home go up and down completely randomly.

Pair Corralation between Meiko Electronics and Bet-at-home

Assuming the 90 days horizon Meiko Electronics Co is expected to generate 1.37 times more return on investment than Bet-at-home. However, Meiko Electronics is 1.37 times more volatile than bet at home AG. It trades about 0.22 of its potential returns per unit of risk. bet at home AG is currently generating about -0.13 per unit of risk. If you would invest  3,640  in Meiko Electronics Co on October 8, 2024 and sell it today you would earn a total of  2,010  from holding Meiko Electronics Co or generate 55.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Meiko Electronics Co  vs.  bet at home AG

Meiko Electronics

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Meiko Electronics Co are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Meiko Electronics 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

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.

Pair Trading with Meiko Electronics and Bet-at-home

The main advantage of trading using opposite Meiko Electronics and Bet-at-home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics 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 Meiko Electronics Co 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.