Correlation Between Bet At and SEB SA
Can any of the company-specific risk be diversified away by investing in both Bet At and SEB SA 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 SEB SA 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 SEB SA, you can compare the effects of market volatilities on Bet At and SEB SA 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 SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and SEB SA.
Diversification Opportunities for Bet At and SEB SA
Weak diversification
The 3 months correlation between Bet and SEB is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA 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 SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Bet At i.e., Bet At and SEB SA go up and down completely randomly.
Pair Corralation between Bet At and SEB SA
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the SEB SA. In addition to that, Bet At is 2.0 times more volatile than SEB SA. It trades about -0.03 of its total potential returns per unit of risk. SEB SA is currently generating about 0.02 per unit of volatility. If you would invest 7,769 in SEB SA on September 3, 2024 and sell it today you would earn a total of 1,184 from holding SEB SA or generate 15.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. SEB SA
Performance |
| Timeline |
| bet at home |
| SEB SA |
Bet At and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and SEB SA
The main advantage of trading using opposite Bet At and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| Bet At vs. Hochschild Mining plc | Bet At vs. GreenX Metals | Bet At vs. Samsung Electronics Co | Bet At vs. Silvercorp Metals |
| SEB SA vs. MyHealthChecked Plc | SEB SA vs. Playtech Plc | SEB SA vs. Charter Communications Cl | SEB SA vs. Induction Healthcare Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |