Correlation Between Ocean Harvest and Bet At
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest 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 Ocean Harvest and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Harvest Technology and bet at home AG, you can compare the effects of market volatilities on Ocean Harvest 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 Ocean Harvest with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and Bet At.
Diversification Opportunities for Ocean Harvest and Bet At
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ocean and Bet is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology 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 Ocean Harvest 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 Ocean Harvest Technology 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 Ocean Harvest i.e., Ocean Harvest and Bet At go up and down completely randomly.
Pair Corralation between Ocean Harvest and Bet At
Assuming the 90 days trading horizon Ocean Harvest Technology is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Ocean Harvest Technology is 1.56 times less risky than Bet At. The stock trades about -0.31 of its potential returns per unit of risk. The bet at home AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 254.00 in bet at home AG on September 25, 2024 and sell it today you would earn a total of 1.00 from holding bet at home AG or generate 0.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ocean Harvest Technology vs. bet at home AG
Performance |
Timeline |
Ocean Harvest Technology |
bet at home |
Ocean Harvest and Bet At Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ocean Harvest and Bet At
The main advantage of trading using opposite Ocean Harvest and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest 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.Ocean Harvest vs. Uniper SE | Ocean Harvest vs. Mulberry Group PLC | Ocean Harvest vs. London Security Plc | Ocean Harvest vs. Triad Group PLC |
Bet At vs. Ocean Harvest Technology | Bet At vs. Global Net Lease | Bet At vs. Spotify Technology SA | Bet At vs. Applied Materials |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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