Correlation Between Aedas Homes and Bet-at-home
Can any of the company-specific risk be diversified away by investing in both Aedas Homes and Bet-at-home 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 Aedas Homes and Bet-at-home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedas Homes SA and bet at home AG, you can compare the effects of market volatilities on Aedas Homes and Bet-at-home 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 Aedas Homes with a short position of Bet-at-home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedas Homes and Bet-at-home.
Diversification Opportunities for Aedas Homes and Bet-at-home
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aedas and Bet-at-home is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SA and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home and Aedas Homes 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 Aedas Homes SA are associated (or correlated) with Bet-at-home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Aedas Homes i.e., Aedas Homes and Bet-at-home go up and down completely randomly.
Pair Corralation between Aedas Homes and Bet-at-home
Assuming the 90 days horizon Aedas Homes SA is expected to generate 0.76 times more return on investment than Bet-at-home. However, Aedas Homes SA is 1.31 times less risky than Bet-at-home. It trades about -0.1 of its potential returns per unit of risk. bet at home AG is currently generating about -0.21 per unit of risk. If you would invest 2,585 in Aedas Homes SA on September 1, 2024 and sell it today you would lose (110.00) from holding Aedas Homes SA or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aedas Homes SA vs. bet at home AG
Performance |
| Timeline |
| Aedas Homes SA |
| bet at home |
Aedas Homes and Bet-at-home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedas Homes and Bet-at-home
The main advantage of trading using opposite Aedas Homes and Bet-at-home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedas Homes position performs unexpectedly, Bet-at-home 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 Bet-at-home will offset losses from the drop in Bet-at-home's long position.The idea behind Aedas Homes SA and bet at home AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bet-at-home vs. SIVERS SEMICONDUCTORS AB | Bet-at-home vs. Darden Restaurants | Bet-at-home vs. Reliance Steel Aluminum | Bet-at-home vs. Q2M Managementberatung AG |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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