Correlation Between Bet-at-home and Keyence
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and Keyence 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 Keyence 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 Keyence, you can compare the effects of market volatilities on Bet-at-home and Keyence 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 Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and Keyence.
Diversification Opportunities for Bet-at-home and Keyence
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bet-at-home and Keyence is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence 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 Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Bet-at-home i.e., Bet-at-home and Keyence go up and down completely randomly.
Pair Corralation between Bet-at-home and Keyence
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Keyence. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.38 times less risky than Keyence. The stock trades about -0.03 of its potential returns per unit of risk. The Keyence is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14,688 in Keyence on September 14, 2024 and sell it today you would earn a total of 26,012 from holding Keyence or generate 177.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. Keyence
Performance |
| Timeline |
| bet at home |
| Keyence |
Bet-at-home and Keyence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and Keyence
The main advantage of trading using opposite Bet-at-home and Keyence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, Keyence 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 Keyence will offset losses from the drop in Keyence's long position.| Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc |
| Keyence vs. Aedas Homes SA | Keyence vs. bet at home AG | Keyence vs. United Airlines Holdings | Keyence vs. Focus Home Interactive |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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