Correlation Between Bet At and LBG Media
Can any of the company-specific risk be diversified away by investing in both Bet At and LBG Media 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 LBG Media 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 LBG Media PLC, you can compare the effects of market volatilities on Bet At and LBG Media 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 LBG Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and LBG Media.
Diversification Opportunities for Bet At and LBG Media
Very weak diversification
The 3 months correlation between Bet and LBG is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and LBG Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG Media PLC 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 LBG Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG Media PLC has no effect on the direction of Bet At i.e., Bet At and LBG Media go up and down completely randomly.
Pair Corralation between Bet At and LBG Media
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the LBG Media. In addition to that, Bet At is 1.61 times more volatile than LBG Media PLC. It trades about -0.21 of its total potential returns per unit of risk. LBG Media PLC is currently generating about -0.11 per unit of volatility. If you would invest 13,300 in LBG Media PLC on September 2, 2024 and sell it today you would lose (600.00) from holding LBG Media PLC or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. LBG Media PLC
Performance |
| Timeline |
| bet at home |
| LBG Media PLC |
Bet At and LBG Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and LBG Media
The main advantage of trading using opposite Bet At and LBG Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, LBG Media 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 LBG Media will offset losses from the drop in LBG Media's long position.| Bet At vs. Uniper SE | Bet At vs. Mulberry Group PLC | Bet At vs. London Security Plc | Bet At vs. Triad Group PLC |
| LBG Media vs. Edita Food Industries | LBG Media vs. L3Harris Technologies | LBG Media vs. Premier Foods PLC | LBG Media vs. Check Point Software |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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