Correlation Between Bet At and JD Sports
Can any of the company-specific risk be diversified away by investing in both Bet At and JD Sports 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 JD Sports 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 JD Sports Fashion, you can compare the effects of market volatilities on Bet At and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and JD Sports.
Diversification Opportunities for Bet At and JD Sports
Excellent diversification
The 3 months correlation between Bet and JD Sports is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Bet At i.e., Bet At and JD Sports go up and down completely randomly.
Pair Corralation between Bet At and JD Sports
Assuming the 90 days trading horizon bet at home AG is expected to generate 1.28 times more return on investment than JD Sports. However, Bet At is 1.28 times more volatile than JD Sports Fashion. It trades about -0.03 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.04 per unit of risk. If you would invest 633.00 in bet at home AG on December 11, 2024 and sell it today you would lose (363.00) from holding bet at home AG or give up 57.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. JD Sports Fashion
Performance |
| Timeline |
| bet at home |
| JD Sports Fashion |
Bet At and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and JD Sports
The main advantage of trading using opposite Bet At and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Bet At vs. Advanced Medical Solutions | ||
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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