Correlation Between Bet At and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Bet At and Thor Industries 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 Thor Industries 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 Thor Industries, you can compare the effects of market volatilities on Bet At and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Thor Industries.
Diversification Opportunities for Bet At and Thor Industries
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bet and Thor is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Bet At i.e., Bet At and Thor Industries go up and down completely randomly.
Pair Corralation between Bet At and Thor Industries
Assuming the 90 days trading horizon bet at home AG is expected to generate 0.8 times more return on investment than Thor Industries. However, bet at home AG is 1.25 times less risky than Thor Industries. It trades about 0.01 of its potential returns per unit of risk. Thor Industries is currently generating about -0.1 per unit of risk. If you would invest 249.00 in bet at home AG on September 20, 2024 and sell it today you would earn a total of 0.00 from holding bet at home AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
bet at home AG vs. Thor Industries
Performance |
| Timeline |
| bet at home |
| Thor Industries |
Bet At and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Thor Industries
The main advantage of trading using opposite Bet At and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' long position.| Bet At vs. AMG Advanced Metallurgical | Bet At vs. Wheaton Precious Metals | Bet At vs. Delta Air Lines | Bet At vs. Future Metals NL |
| Thor Industries vs. Dalata Hotel Group | Thor Industries vs. bet at home AG | Thor Industries vs. Melia Hotels | Thor Industries vs. Capital Drilling |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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