Correlation Between Safety Insurance and Bet At
Can any of the company-specific risk be diversified away by investing in both Safety Insurance 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 Safety Insurance and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safety Insurance Group and bet at home AG, you can compare the effects of market volatilities on Safety Insurance 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 Safety Insurance with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Insurance and Bet At.
Diversification Opportunities for Safety Insurance and Bet At
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safety and Bet is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group 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 Safety Insurance 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 Safety Insurance Group 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 Safety Insurance i.e., Safety Insurance and Bet At go up and down completely randomly.
Pair Corralation between Safety Insurance and Bet At
Assuming the 90 days horizon Safety Insurance Group is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Safety Insurance Group is 2.3 times less risky than Bet At. The stock trades about -0.19 of its potential returns per unit of risk. The bet at home AG is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 250.00 in bet at home AG on October 25, 2024 and sell it today you would earn a total of 41.00 from holding bet at home AG or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Safety Insurance Group vs. bet at home AG
Performance |
| Timeline |
| Safety Insurance |
| bet at home |
Safety Insurance and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safety Insurance and Bet At
The main advantage of trading using opposite Safety Insurance and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Insurance 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.| Safety Insurance vs. PARKEN Sport Entertainment | Safety Insurance vs. INTER CARS SA | Safety Insurance vs. TOWNSQUARE MEDIA INC | Safety Insurance vs. Carsales |
| Bet At vs. REVO INSURANCE SPA | Bet At vs. CHIBA BANK | Bet At vs. UNIQA INSURANCE GR | Bet At vs. Discover Financial Services |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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