Correlation Between Bet-at-home and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and Hartford Financial 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-home and Hartford Financial 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 The Hartford Financial, you can compare the effects of market volatilities on Bet-at-home and Hartford Financial 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-home with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and Hartford Financial.
Diversification Opportunities for Bet-at-home and Hartford Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bet-at-home and Hartford is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and The Hartford Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Financial and Bet-at-home 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 Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Financial has no effect on the direction of Bet-at-home i.e., Bet-at-home and Hartford Financial go up and down completely randomly.
Pair Corralation between Bet-at-home and Hartford Financial
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Hartford Financial. In addition to that, Bet-at-home is 1.16 times more volatile than The Hartford Financial. It trades about -0.17 of its total potential returns per unit of risk. The Hartford Financial is currently generating about 0.02 per unit of volatility. If you would invest 10,354 in The Hartford Financial on September 25, 2024 and sell it today you would earn a total of 146.00 from holding The Hartford Financial or generate 1.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
bet at home AG vs. The Hartford Financial
Performance |
Timeline |
bet at home |
The Hartford Financial |
Bet-at-home and Hartford Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bet-at-home and Hartford Financial
The main advantage of trading using opposite Bet-at-home and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, Hartford Financial 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 Hartford Financial will offset losses from the drop in Hartford Financial's long position.Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Microsoft | Bet-at-home vs. Microsoft |
Hartford Financial vs. bet at home AG | Hartford Financial vs. HomeToGo SE | Hartford Financial vs. JAPAN AIRLINES | Hartford Financial vs. KB HOME |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Positions Ratings 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 |