Correlation Between Bet-at-home and Range Resources

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

Diversification Opportunities for Bet-at-home and Range Resources

-0.17

Correlation Coefficient

Bet-at-home  Range Resources

Good diversification

The 3 months correlation between Bet-at-home and Range is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Range Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Range Resources Corp 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 Range Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Range Resources Corp has no effect on the direction of Bet-at-home i.e., Bet-at-home and Range Resources go up and down completely randomly.

Pair Corralation between Bet-at-home and Range Resources

Assuming the 90 days horizon bet at home AG is expected to generate 3.85 times more return on investment than Range Resources. However, Bet-at-home is 3.85 times more volatile than Range Resources Corp. It trades about 0.07 of its potential returns per unit of risk. Range Resources Corp is currently generating about -0.05 per unit of risk. If you would invest  233.00  in bet at home AG on April 21, 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

bet at home AG  vs.  Range Resources Corp

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.

Range Resources Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Range Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Range Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bet-at-home and Range Resources

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

The idea behind bet at home AG and Range Resources Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.