Correlation Between Bet-at-home and Cellink AB
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and Cellink AB 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-home and Cellink AB 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 Cellink AB, you can compare the effects of market volatilities on Bet-at-home and Cellink AB 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-home with a short position of Cellink AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and Cellink AB.
Diversification Opportunities for Bet-at-home and Cellink AB
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bet-at-home and Cellink is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Cellink AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellink AB and Bet-at-home 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 Cellink AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellink AB has no effect on the direction of Bet-at-home i.e., Bet-at-home and Cellink AB go up and down completely randomly.
Pair Corralation between Bet-at-home and Cellink AB
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Cellink AB. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.68 times less risky than Cellink AB. The stock trades about -0.04 of its potential returns per unit of risk. The Cellink AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 526.00 in Cellink AB on December 4, 2024 and sell it today you would lose (197.00) from holding Cellink AB or give up 37.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. Cellink AB
Performance |
| Timeline |
| bet at home |
| Cellink AB |
Bet-at-home and Cellink AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and Cellink AB
The main advantage of trading using opposite Bet-at-home and Cellink AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, Cellink AB 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 Cellink AB will offset losses from the drop in Cellink AB's long position.| Bet-at-home vs. Maple Leaf Foods | Bet-at-home vs. Tokyu Construction Co | Bet-at-home vs. China Foods Limited | Bet-at-home vs. Titan Machinery |
| Cellink AB vs. Iridium Communications | Cellink AB vs. CALTAGIRONE EDITORE | Cellink AB vs. BlueScope Steel Limited | Cellink AB vs. Daido Steel Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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