Correlation Between Bet At and ADDUS HOMECARE
Can any of the company-specific risk be diversified away by investing in both Bet At and ADDUS HOMECARE 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 and ADDUS HOMECARE 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 ADDUS HOMECARE, you can compare the effects of market volatilities on Bet At and ADDUS HOMECARE 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 with a short position of ADDUS HOMECARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and ADDUS HOMECARE.
Diversification Opportunities for Bet At and ADDUS HOMECARE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bet and ADDUS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and ADDUS HOMECARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADDUS HOMECARE and Bet At 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 ADDUS HOMECARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADDUS HOMECARE has no effect on the direction of Bet At i.e., Bet At and ADDUS HOMECARE go up and down completely randomly.
Pair Corralation between Bet At and ADDUS HOMECARE
Assuming the 90 days trading horizon bet at home AG is expected to generate 1.78 times more return on investment than ADDUS HOMECARE. However, Bet At is 1.78 times more volatile than ADDUS HOMECARE. It trades about 0.27 of its potential returns per unit of risk. ADDUS HOMECARE is currently generating about 0.03 per unit of risk. If you would invest 250.00 in bet at home AG on October 27, 2024 and sell it today you would earn a total of 41.00 from holding bet at home AG or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
bet at home AG vs. ADDUS HOMECARE
Performance |
| Timeline |
| bet at home |
| ADDUS HOMECARE |
Bet At and ADDUS HOMECARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and ADDUS HOMECARE
The main advantage of trading using opposite Bet At and ADDUS HOMECARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, ADDUS HOMECARE 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 ADDUS HOMECARE will offset losses from the drop in ADDUS HOMECARE's long position.| Bet At vs. KINGBOARD CHEMICAL | Bet At vs. Silicon Motion Technology | Bet At vs. Global Ship Lease | Bet At vs. Shin Etsu Chemical Co |
| ADDUS HOMECARE vs. Inspire Medical Systems | ADDUS HOMECARE vs. ADRIATIC METALS LS 013355 | ADDUS HOMECARE vs. DISTRICT METALS | ADDUS HOMECARE vs. Western Copper and |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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