Correlation Between Bet At and Phillips
Can any of the company-specific risk be diversified away by investing in both Bet At and Phillips 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 Phillips 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 Phillips 66, you can compare the effects of market volatilities on Bet At and Phillips 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 Phillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Phillips.
Diversification Opportunities for Bet At and Phillips
Good diversification
The 3 months correlation between Bet and Phillips is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Phillips 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips 66 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 Phillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips 66 has no effect on the direction of Bet At i.e., Bet At and Phillips go up and down completely randomly.
Pair Corralation between Bet At and Phillips
Assuming the 90 days trading horizon bet at home AG is expected to generate 4.25 times more return on investment than Phillips. However, Bet At is 4.25 times more volatile than Phillips 66. It trades about 0.15 of its potential returns per unit of risk. Phillips 66 is currently generating about 0.3 per unit of risk. If you would invest 246.00 in bet at home AG on October 26, 2024 and sell it today you would earn a total of 37.00 from holding bet at home AG or generate 15.04% 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. Phillips 66
Performance |
| Timeline |
| bet at home |
| Phillips 66 |
Bet At and Phillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Phillips
The main advantage of trading using opposite Bet At and Phillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Phillips 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 Phillips will offset losses from the drop in Phillips' long position.| Bet At vs. Wizz Air Holdings | Bet At vs. MAG SILVER | Bet At vs. Globex Mining Enterprises | Bet At vs. Norwegian Air Shuttle |
| Phillips vs. ADDUS HOMECARE | Phillips vs. CAIRN HOMES EO | Phillips vs. Lendlease Group | Phillips vs. bet at home AG |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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