Correlation Between AOYAMA TRADING and Bet-at-home
Can any of the company-specific risk be diversified away by investing in both AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING and bet at home AG, you can compare the effects of market volatilities on AOYAMA TRADING 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 AOYAMA TRADING with a short position of Bet-at-home. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOYAMA TRADING and Bet-at-home.
Diversification Opportunities for AOYAMA TRADING and Bet-at-home
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AOYAMA and Bet-at-home is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING i.e., AOYAMA TRADING and Bet-at-home go up and down completely randomly.
Pair Corralation between AOYAMA TRADING and Bet-at-home
Assuming the 90 days horizon AOYAMA TRADING is expected to under-perform the Bet-at-home. But the stock apears to be less risky and, when comparing its historical volatility, AOYAMA TRADING is 1.52 times less risky than Bet-at-home. The stock trades about -0.22 of its potential returns per unit of risk. The bet at home AG is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 287.00 in bet at home AG on January 9, 2025 and sell it today you would lose (33.00) from holding bet at home AG or give up 11.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AOYAMA TRADING vs. bet at home AG
Performance |
| Timeline |
| AOYAMA TRADING |
| bet at home |
AOYAMA TRADING and Bet-at-home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOYAMA TRADING and Bet-at-home
The main advantage of trading using opposite AOYAMA TRADING and Bet-at-home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOYAMA TRADING 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.| AOYAMA TRADING vs. ECHO INVESTMENT ZY | AOYAMA TRADING vs. Tower One Wireless | AOYAMA TRADING vs. Japan Asia Investment | AOYAMA TRADING vs. 24SEVENOFFICE GROUP AB |
| Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Microsoft |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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