Correlation Between NVIDIA and Bet-at-home

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

Diversification Opportunities for NVIDIA and Bet-at-home

0.09

Correlation Coefficient

NVIDIA  Bet-at-home

Significant diversification

The 3 months correlation between NVIDIA and Bet-at-home is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA 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 NVIDIA 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 NVIDIA 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 NVIDIA i.e., NVIDIA and Bet-at-home go up and down completely randomly.

Pair Corralation between NVIDIA and Bet-at-home

Assuming the 90 days trading horizon NVIDIA is expected to under-perform the Bet-at-home. In addition to that, NVIDIA is 1.08 times more volatile than bet at home AG. It trades about -0.06 of its total potential returns per unit of risk. bet at home AG is currently generating about 0.06 per unit of volatility. If you would invest  250.00  in bet at home AG on December 22, 2024 and sell it today you would earn a total of  23.00  from holding bet at home AG or generate 9.2% return on investment over 90 days.

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

NVIDIA  vs.  bet at home AG

NVIDIA

Risk-Adjusted Performance

Very Weak

Over the last 90 days NVIDIA 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 fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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 NVIDIA and Bet-at-home

The main advantage of trading using opposite NVIDIA and Bet-at-home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA 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 NVIDIA 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..