Correlation Between Pointsbet Holdings and Maggie Beer

Can any of the company-specific risk be diversified away by investing in both Pointsbet Holdings and Maggie Beer 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 Pointsbet Holdings and Maggie Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pointsbet Holdings and Maggie Beer Holdings, you can compare the effects of market volatilities on Pointsbet Holdings and Maggie Beer 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 Pointsbet Holdings with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pointsbet Holdings and Maggie Beer.

Diversification Opportunities for Pointsbet Holdings and Maggie Beer

-0.75

Correlation Coefficient

Pointsbet Holdings  Maggie Beer

Pay attention - limited upside

The 3 months correlation between Pointsbet and Maggie is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Pointsbet Holdings and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Pointsbet Holdings 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 Pointsbet Holdings are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Pointsbet Holdings i.e., Pointsbet Holdings and Maggie Beer go up and down completely randomly.

Pair Corralation between Pointsbet Holdings and Maggie Beer

Assuming the 90 days trading horizon Pointsbet Holdings is expected to generate 0.67 times more return on investment than Maggie Beer. However, Pointsbet Holdings is 1.48 times less risky than Maggie Beer. It trades about 0.18 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about -0.03 per unit of risk. If you would invest  70.00  in Pointsbet Holdings on September 28, 2024 and sell it today you would earn a total of  27.00  from holding Pointsbet Holdings or generate 38.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Pointsbet Holdings  vs.  Maggie Beer Holdings

Pointsbet Holdings

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pointsbet Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Pointsbet Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Maggie Beer Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maggie Beer Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Pointsbet Holdings and Maggie Beer

The main advantage of trading using opposite Pointsbet Holdings and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pointsbet Holdings position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.

The idea behind Pointsbet Holdings and Maggie Beer Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.