Correlation Between British American and Bet At
Can any of the company-specific risk be diversified away by investing in both British American 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 British American and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British American Tobacco and bet at home AG, you can compare the effects of market volatilities on British American 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 British American with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of British American and Bet At.
Diversification Opportunities for British American and Bet At
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and Bet is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco 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 British American 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 British American Tobacco 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 British American i.e., British American and Bet At go up and down completely randomly.
Pair Corralation between British American and Bet At
Assuming the 90 days trading horizon British American Tobacco is expected to generate 0.69 times more return on investment than Bet At. However, British American Tobacco is 1.46 times less risky than Bet At. It trades about 0.02 of its potential returns per unit of risk. bet at home AG is currently generating about -0.04 per unit of risk. If you would invest 3,230 in British American Tobacco on October 14, 2024 and sell it today you would earn a total of 387.00 from holding British American Tobacco or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
British American Tobacco vs. bet at home AG
Performance |
| Timeline |
| British American Tobacco |
| bet at home |
British American and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British American and Bet At
The main advantage of trading using opposite British American and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British American 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.| British American vs. Zinc Media Group | British American vs. AcadeMedia AB | British American vs. Intermediate Capital Group | British American vs. First Class Metals |
| Bet At vs. Cairn Homes PLC | Bet At vs. Delta Air Lines | Bet At vs. DFS Furniture PLC | Bet At vs. British American Tobacco |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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