Correlation Between Bet At and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Bet At and Host Hotels 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 Bet At and Host Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and Host Hotels Resorts, you can compare the effects of market volatilities on Bet At and Host Hotels 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 Bet At with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Host Hotels.
Diversification Opportunities for Bet At and Host Hotels
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bet and Host is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts and Bet At 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 bet at home AG are associated (or correlated) with Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Bet At i.e., Bet At and Host Hotels go up and down completely randomly.
Pair Corralation between Bet At and Host Hotels
Assuming the 90 days trading horizon bet at home AG is expected to generate 3.38 times more return on investment than Host Hotels. However, Bet At is 3.38 times more volatile than Host Hotels Resorts. It trades about 0.01 of its potential returns per unit of risk. Host Hotels Resorts is currently generating about 0.04 per unit of risk. If you would invest 269.00 in bet at home AG on September 5, 2024 and sell it today you would lose (16.00) from holding bet at home AG or give up 5.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
bet at home AG vs. Host Hotels Resorts
Performance |
| Timeline |
| bet at home |
| Host Hotels Resorts |
Bet At and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Host Hotels
The main advantage of trading using opposite Bet At and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Host Hotels 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| Bet At vs. Ally Financial | Bet At vs. Prudential Financial | Bet At vs. Charter Communications Cl | Bet At vs. American Homes 4 |
| Host Hotels vs. International Biotechnology Trust | Host Hotels vs. Sabien Technology Group | Host Hotels vs. CNH Industrial NV | Host Hotels vs. Silvercorp Metals |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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