Correlation Between Bet-at-home and FOKUS MINING

Can any of the company-specific risk be diversified away by investing in both Bet-at-home and FOKUS MINING 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 FOKUS MINING 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 FOKUS MINING P, you can compare the effects of market volatilities on Bet-at-home and FOKUS MINING 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 FOKUS MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and FOKUS MINING.

Diversification Opportunities for Bet-at-home and FOKUS MINING

0.43

Correlation Coefficient

Bet-at-home  FOKUS MINING

Very weak diversification

The 3 months correlation between Bet-at-home and FOKUS is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and FOKUS MINING P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOKUS MINING P 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 FOKUS MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOKUS MINING P has no effect on the direction of Bet-at-home i.e., Bet-at-home and FOKUS MINING go up and down completely randomly.

Pair Corralation between Bet-at-home and FOKUS MINING

Assuming the 90 days horizon bet at home AG is expected to generate 0.87 times more return on investment than FOKUS MINING. However, bet at home AG is 1.15 times less risky than FOKUS MINING. It trades about 0.07 of its potential returns per unit of risk. FOKUS MINING P is currently generating about 0.02 per unit of risk. If you would invest  233.00  in bet at home AG on April 20, 2025 and sell it today you would earn a total of  34.00  from holding bet at home AG or generate 14.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

bet at home AG  vs.  FOKUS MINING P

bet at home

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in bet at home AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bet-at-home reported solid returns over the last few months and may actually be approaching a breakup point.

FOKUS MINING P

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FOKUS MINING P are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, FOKUS MINING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bet-at-home and FOKUS MINING

The main advantage of trading using opposite Bet-at-home and FOKUS MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, FOKUS MINING 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 FOKUS MINING will offset losses from the drop in FOKUS MINING's long position.

The idea behind bet at home AG and FOKUS MINING P 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.