Correlation Between Acadia Healthcare and Bet At
Can any of the company-specific risk be diversified away by investing in both Acadia Healthcare 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 Acadia Healthcare and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Healthcare and bet at home AG, you can compare the effects of market volatilities on Acadia Healthcare 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 Acadia Healthcare with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Healthcare and Bet At.
Diversification Opportunities for Acadia Healthcare and Bet At
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acadia and Bet is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Healthcare 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 Acadia Healthcare 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 Acadia Healthcare 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 Acadia Healthcare i.e., Acadia Healthcare and Bet At go up and down completely randomly.
Pair Corralation between Acadia Healthcare and Bet At
Assuming the 90 days horizon Acadia Healthcare is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Acadia Healthcare is 1.52 times less risky than Bet At. The stock trades about -0.06 of its potential returns per unit of risk. The bet at home AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 243.00 in bet at home AG on November 7, 2024 and sell it today you would earn a total of 10.00 from holding bet at home AG or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Healthcare vs. bet at home AG
Performance |
| Timeline |
| Acadia Healthcare |
| bet at home |
Acadia Healthcare and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Healthcare and Bet At
The main advantage of trading using opposite Acadia Healthcare and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Healthcare 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.| Acadia Healthcare vs. ADRIATIC METALS LS 013355 | Acadia Healthcare vs. Cairo Communication SpA | Acadia Healthcare vs. Fortescue Metals Group | Acadia Healthcare vs. CORNISH METALS INC |
| Bet At vs. Thai Beverage Public | Bet At vs. TRADEDOUBLER AB SK | Bet At vs. Moneysupermarket Group PLC | Bet At vs. Retail Estates NV |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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