Correlation Between Westpac Banking and Betmakers Technology
Can any of the company-specific risk be diversified away by investing in both Westpac Banking 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 Westpac Banking and Betmakers Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westpac Banking and Betmakers Technology Group, you can compare the effects of market volatilities on Westpac Banking 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 Westpac Banking with a short position of Betmakers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westpac Banking and Betmakers Technology.
Diversification Opportunities for Westpac Banking and Betmakers Technology
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Westpac and Betmakers is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Westpac Banking and Betmakers Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betmakers Technology and Westpac Banking 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 Westpac Banking 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 Westpac Banking i.e., Westpac Banking and Betmakers Technology go up and down completely randomly.
Pair Corralation between Westpac Banking and Betmakers Technology
Assuming the 90 days trading horizon Westpac Banking is expected to under-perform the Betmakers Technology. But the preferred stock apears to be less risky and, when comparing its historical volatility, Westpac Banking is 21.1 times less risky than Betmakers Technology. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Betmakers Technology Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Betmakers Technology Group on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Betmakers Technology Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westpac Banking vs. Betmakers Technology Group
Performance |
| Timeline |
| Westpac Banking |
| Betmakers Technology |
Westpac Banking and Betmakers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westpac Banking and Betmakers Technology
The main advantage of trading using opposite Westpac Banking and Betmakers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westpac Banking 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.| Westpac Banking vs. Imricor Medical Systems | Westpac Banking vs. Midway | Westpac Banking vs. Betmakers Technology Group | Westpac Banking vs. SportsHero |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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