Correlation Between Haier Smart and Bet At
Can any of the company-specific risk be diversified away by investing in both Haier Smart and Bet At 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 Haier Smart and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and bet at home AG, you can compare the effects of market volatilities on Haier Smart and Bet At 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 Haier Smart with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Bet At.
Diversification Opportunities for Haier Smart and Bet At
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haier and Bet is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home 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 Haier Smart 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 Haier Smart Home are associated (or correlated) with Bet At. 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 Haier Smart i.e., Haier Smart and Bet At go up and down completely randomly.
Pair Corralation between Haier Smart and Bet At
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 0.42 times more return on investment than Bet At. However, Haier Smart Home is 2.37 times less risky than Bet At. It trades about 0.08 of its potential returns per unit of risk. bet at home AG is currently generating about 0.03 per unit of risk. If you would invest 148.00 in Haier Smart Home on September 3, 2024 and sell it today you would earn a total of 28.00 from holding Haier Smart Home or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. bet at home AG
Performance |
| Timeline |
| Haier Smart Home |
| bet at home |
Haier Smart and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Bet At
The main advantage of trading using opposite Haier Smart and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, Bet At 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 will offset losses from the drop in Bet At's long position.| Haier Smart vs. Sixt Leasing SE | Haier Smart vs. ALGOMA STEEL GROUP | Haier Smart vs. Tianjin Capital Environmental | Haier Smart vs. Perma Fix Environmental Services |
| Bet At vs. UNIVMUSIC GRPADR050 | Bet At vs. MCEWEN MINING INC | Bet At vs. Performance Food Group | Bet At vs. HF FOODS GRP |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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