Correlation Between MidCap Financial and Bet At

Can any of the company-specific risk be diversified away by investing in both MidCap Financial 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 MidCap Financial and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MidCap Financial Investment and bet at home AG, you can compare the effects of market volatilities on MidCap Financial 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 MidCap Financial with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of MidCap Financial and Bet At.

Diversification Opportunities for MidCap Financial and Bet At

0.54

Correlation Coefficient

MidCap Financial  Bet At

Very weak diversification

The 3 months correlation between MidCap and Bet is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MidCap Financial Investment 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 MidCap Financial 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 MidCap Financial Investment 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 MidCap Financial i.e., MidCap Financial and Bet At go up and down completely randomly.

Pair Corralation between MidCap Financial and Bet At

Assuming the 90 days trading horizon MidCap Financial is expected to generate 1.44 times less return on investment than Bet At. But when comparing it to its historical volatility, MidCap Financial Investment is 2.64 times less risky than Bet At. It trades about 0.12 of its potential returns per unit of risk. bet at home AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  250.00  in bet at home AG on April 24, 2025 and sell it today you would earn a total of  29.00  from holding bet at home AG or generate 11.6% return on investment over 90 days.

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

MidCap Financial Investment  vs.  bet at home AG

MidCap Financial Inv

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MidCap Financial Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, MidCap Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

bet at home

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in bet at home AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Bet At exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MidCap Financial and Bet At

The main advantage of trading using opposite MidCap Financial and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MidCap Financial 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.

The idea behind MidCap Financial Investment and bet at home AG 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.