Correlation Between ITV PLC and Betmakers Technology
Can any of the company-specific risk be diversified away by investing in both ITV PLC and Betmakers Technology 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 ITV PLC and Betmakers Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITV PLC ADR and Betmakers Technology Group, you can compare the effects of market volatilities on ITV PLC and Betmakers Technology 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 ITV PLC with a short position of Betmakers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITV PLC and Betmakers Technology.
Diversification Opportunities for ITV PLC and Betmakers Technology
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ITV and Betmakers is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ITV PLC ADR and Betmakers Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betmakers Technology and ITV PLC 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 ITV PLC ADR are associated (or correlated) with Betmakers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betmakers Technology has no effect on the direction of ITV PLC i.e., ITV PLC and Betmakers Technology go up and down completely randomly.
Pair Corralation between ITV PLC and Betmakers Technology
If you would invest 894.00 in ITV PLC ADR on November 4, 2024 and sell it today you would earn a total of 14.00 from holding ITV PLC ADR or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ITV PLC ADR vs. Betmakers Technology Group
Performance |
| Timeline |
| ITV PLC ADR |
| Betmakers Technology |
ITV PLC and Betmakers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITV PLC and Betmakers Technology
The main advantage of trading using opposite ITV PLC and Betmakers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITV PLC position performs unexpectedly, Betmakers Technology 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 Betmakers Technology will offset losses from the drop in Betmakers Technology's long position.| ITV PLC vs. ProSiebenSat1 Media AG | ITV PLC vs. RTL Group SA | ITV PLC vs. iHeartMedia | ITV PLC vs. TV Azteca SAB |
| Betmakers Technology vs. Uranium Energy Corp | Betmakers Technology vs. Cheche Group Class | Betmakers Technology vs. Parker Hannifin | Betmakers Technology vs. Tesla 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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