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 PLC 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
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cairn and Bet is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cairn Homes PLC 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 PLC 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 trading horizon Cairn Homes PLC is expected to generate 0.59 times more return on investment than Bet At. However, Cairn Homes PLC is 1.69 times less risky than Bet At. It trades about -0.19 of its potential returns per unit of risk. bet at home AG is currently generating about -0.24 per unit of risk. If you would invest 18,380 in Cairn Homes PLC on August 31, 2024 and sell it today you would lose (1,300) from holding Cairn Homes PLC or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cairn Homes PLC vs. bet at home AG
Performance |
| Timeline |
| Cairn Homes PLC |
| 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. Alfa Financial Software | Cairn Homes vs. Check Point Software | Cairn Homes vs. GreenX Metals | Cairn Homes vs. Wheaton Precious Metals |
| Bet At vs. Ross Stores | Bet At vs. Playtech Plc | Bet At vs. L3Harris Technologies | Bet At vs. Celebrus Technologies plc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |