Correlation Between CHINA TONTINE and Bet-at-home
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and Bet-at-home 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 CHINA TONTINE and Bet-at-home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and bet at home AG, you can compare the effects of market volatilities on CHINA TONTINE and Bet-at-home 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 CHINA TONTINE with a short position of Bet-at-home. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Bet-at-home.
Diversification Opportunities for CHINA TONTINE and Bet-at-home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Bet-at-home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES 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 CHINA TONTINE 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 CHINA TONTINE WINES are associated (or correlated) with Bet-at-home. 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 CHINA TONTINE i.e., CHINA TONTINE and Bet-at-home go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Bet-at-home
Assuming the 90 days trading horizon CHINA TONTINE WINES is expected to generate 15.22 times more return on investment than Bet-at-home. However, CHINA TONTINE is 15.22 times more volatile than bet at home AG. It trades about 0.05 of its potential returns per unit of risk. bet at home AG is currently generating about -0.03 per unit of risk. If you would invest 0.70 in CHINA TONTINE WINES on August 31, 2024 and sell it today you would earn a total of 6.30 from holding CHINA TONTINE WINES or generate 900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. bet at home AG
Performance |
| Timeline |
| CHINA TONTINE WINES |
| bet at home |
CHINA TONTINE and Bet-at-home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Bet-at-home
The main advantage of trading using opposite CHINA TONTINE and Bet-at-home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, Bet-at-home 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-home will offset losses from the drop in Bet-at-home's long position.| CHINA TONTINE vs. ANDREW PELLER LTD | CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings |
| Bet-at-home vs. Austevoll Seafood ASA | Bet-at-home vs. CHINA TONTINE WINES | Bet-at-home vs. SIMS METAL MGT | Bet-at-home vs. Aluminum of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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