Correlation Between Bet-at-home and Apple
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Bet-at-home and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and Apple.
Diversification Opportunities for Bet-at-home and Apple
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bet-at-home and Apple is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Bet-at-home i.e., Bet-at-home and Apple go up and down completely randomly.
Pair Corralation between Bet-at-home and Apple
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Apple. In addition to that, Bet-at-home is 3.17 times more volatile than Apple Inc. It trades about -0.32 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.79 per unit of volatility. If you would invest 21,145 in Apple Inc on September 13, 2024 and sell it today you would earn a total of 2,630 from holding Apple Inc or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. Apple Inc
Performance |
| Timeline |
| bet at home |
| Apple Inc |
Bet-at-home and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and Apple
The main advantage of trading using opposite Bet-at-home and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Bet-at-home vs. Salesforce | Bet-at-home vs. BROADSTNET LEADL 00025 | Bet-at-home vs. COPLAND ROAD CAPITAL | Bet-at-home vs. Gaztransport Technigaz SA |
| Apple vs. Virtus Investment Partners | Apple vs. Chiba Bank | Apple vs. BANKINTER ADR 2007 | Apple vs. REVO INSURANCE SPA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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