Correlation Between State Bank and Bet At
Can any of the company-specific risk be diversified away by investing in both State Bank 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 State Bank and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and bet at home AG, you can compare the effects of market volatilities on State Bank 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 State Bank with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Bet At.
Diversification Opportunities for State Bank and Bet At
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Bet is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of 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 State Bank 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 State Bank of 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 State Bank i.e., State Bank and Bet At go up and down completely randomly.
Pair Corralation between State Bank and Bet At
Assuming the 90 days horizon State Bank of is expected to generate 0.55 times more return on investment than Bet At. However, State Bank of is 1.83 times less risky than Bet At. It trades about 0.08 of its potential returns per unit of risk. bet at home AG is currently generating about -0.01 per unit of risk. If you would invest 6,675 in State Bank of on September 3, 2024 and sell it today you would earn a total of 2,675 from holding State Bank of or generate 40.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. bet at home AG
Performance |
| Timeline |
| State Bank |
| bet at home |
State Bank and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Bet At
The main advantage of trading using opposite State Bank and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank 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.| State Bank vs. Evolution Mining Limited | State Bank vs. MTI WIRELESS EDGE | State Bank vs. GALENA MINING LTD | State Bank vs. MCEWEN MINING INC |
| Bet At vs. UNIVMUSIC GRPADR050 | Bet At vs. MCEWEN MINING INC | Bet At vs. Performance Food Group | Bet At vs. HF FOODS GRP |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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