Correlation Between CAIRN HOMES and Bet At
Can any of the company-specific risk be diversified away by investing in both CAIRN HOMES and Bet At 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 CAIRN HOMES and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAIRN HOMES EO and bet at home AG, you can compare the effects of market volatilities on CAIRN HOMES and Bet At 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 CAIRN HOMES with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAIRN HOMES and Bet At.
Diversification Opportunities for CAIRN HOMES and Bet At
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CAIRN and Bet is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CAIRN HOMES EO and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home and CAIRN HOMES 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 CAIRN HOMES EO are associated (or correlated) with Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of CAIRN HOMES i.e., CAIRN HOMES and Bet At go up and down completely randomly.
Pair Corralation between CAIRN HOMES and Bet At
Assuming the 90 days horizon CAIRN HOMES EO is expected to generate 0.74 times more return on investment than Bet At. However, CAIRN HOMES EO is 1.35 times less risky than Bet At. It trades about 0.1 of its potential returns per unit of risk. bet at home AG is currently generating about -0.05 per unit of risk. If you would invest 85.00 in CAIRN HOMES EO on October 16, 2024 and sell it today you would earn a total of 140.00 from holding CAIRN HOMES EO or generate 164.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAIRN HOMES EO vs. bet at home AG
Performance |
| Timeline |
| CAIRN HOMES EO |
| bet at home |
CAIRN HOMES and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAIRN HOMES and Bet At
The main advantage of trading using opposite CAIRN HOMES and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAIRN HOMES position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| CAIRN HOMES vs. QINGCI GAMES INC | CAIRN HOMES vs. Harmony Gold Mining | CAIRN HOMES vs. GigaMedia | CAIRN HOMES vs. Calibre Mining Corp |
| Bet At vs. 24SEVENOFFICE GROUP AB | Bet At vs. QBE Insurance Group | Bet At vs. CAIRN HOMES EO | Bet At vs. Universal Insurance Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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