Correlation Between Bet At and Litigation Capital
Can any of the company-specific risk be diversified away by investing in both Bet At and Litigation Capital 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 Bet At and Litigation Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and Litigation Capital Management, you can compare the effects of market volatilities on Bet At and Litigation Capital 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 Bet At with a short position of Litigation Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Litigation Capital.
Diversification Opportunities for Bet At and Litigation Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bet and Litigation is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Litigation Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litigation Capital and Bet At 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 bet at home AG are associated (or correlated) with Litigation Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litigation Capital has no effect on the direction of Bet At i.e., Bet At and Litigation Capital go up and down completely randomly.
Pair Corralation between Bet At and Litigation Capital
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Litigation Capital. In addition to that, Bet At is 1.01 times more volatile than Litigation Capital Management. It trades about -0.15 of its total potential returns per unit of risk. Litigation Capital Management is currently generating about 0.02 per unit of volatility. If you would invest 10,073 in Litigation Capital Management on September 23, 2024 and sell it today you would earn a total of 177.00 from holding Litigation Capital Management or generate 1.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
bet at home AG vs. Litigation Capital Management
Performance |
Timeline |
bet at home |
Litigation Capital |
Bet At and Litigation Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bet At and Litigation Capital
The main advantage of trading using opposite Bet At and Litigation Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Litigation Capital 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 Litigation Capital will offset losses from the drop in Litigation Capital's long position.Bet At vs. SMA Solar Technology | Bet At vs. Abingdon Health Plc | Bet At vs. Concurrent Technologies Plc | Bet At vs. Scandinavian Tobacco Group |
Litigation Capital vs. Omega Healthcare Investors | Litigation Capital vs. Universal Health Services | Litigation Capital vs. bet at home AG | Litigation Capital vs. Inspiration Healthcare Group |
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 Directory module to find actively traded commodities issued by global exchanges.
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