Correlation Between Bet-at-home and Lifeway Foods
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods, you can compare the effects of market volatilities on Bet-at-home and Lifeway Foods 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 Lifeway Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and Lifeway Foods.
Diversification Opportunities for Bet-at-home and Lifeway Foods
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bet-at-home and Lifeway is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Lifeway Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifeway Foods 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 Lifeway Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifeway Foods has no effect on the direction of Bet-at-home i.e., Bet-at-home and Lifeway Foods go up and down completely randomly.
Pair Corralation between Bet-at-home and Lifeway Foods
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Lifeway Foods. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.84 times less risky than Lifeway Foods. The stock trades about -0.02 of its potential returns per unit of risk. The Lifeway Foods is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Lifeway Foods on September 12, 2024 and sell it today you would earn a total of 1,760 from holding Lifeway Foods or generate 314.29% 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. Lifeway Foods
Performance |
| Timeline |
| bet at home |
| Lifeway Foods |
Bet-at-home and Lifeway Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and Lifeway Foods
The main advantage of trading using opposite Bet-at-home and Lifeway Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, Lifeway Foods 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 Lifeway Foods will offset losses from the drop in Lifeway Foods' 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 |
| Lifeway Foods vs. Hormel Foods | Lifeway Foods vs. Superior Plus Corp | Lifeway Foods vs. SIVERS SEMICONDUCTORS AB | Lifeway Foods vs. NorAm Drilling AS |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |