Correlation Between Bet At and Performance Food
Can any of the company-specific risk be diversified away by investing in both Bet At and Performance Food 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 Performance Food 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 Performance Food Group, you can compare the effects of market volatilities on Bet At and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Performance Food.
Diversification Opportunities for Bet At and Performance Food
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bet and Performance is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of Bet At i.e., Bet At and Performance Food go up and down completely randomly.
Pair Corralation between Bet At and Performance Food
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Performance Food. In addition to that, Bet At is 2.27 times more volatile than Performance Food Group. It trades about -0.01 of its total potential returns per unit of risk. Performance Food Group is currently generating about 0.09 per unit of volatility. If you would invest 6,150 in Performance Food Group on September 4, 2024 and sell it today you would earn a total of 2,250 from holding Performance Food Group or generate 36.59% 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. Performance Food Group
Performance |
| Timeline |
| bet at home |
| Performance Food |
Bet At and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Performance Food
The main advantage of trading using opposite Bet At and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| Bet At vs. Aluminum of | Bet At vs. QBE Insurance Group | Bet At vs. GREENX METALS LTD | Bet At vs. Kaiser Aluminum |
| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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