Correlation Between BE Group and Betsson AB
Can any of the company-specific risk be diversified away by investing in both BE Group and Betsson AB 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 BE Group and Betsson AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BE Group AB and Betsson AB, you can compare the effects of market volatilities on BE Group and Betsson AB 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 BE Group with a short position of Betsson AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Group and Betsson AB.
Diversification Opportunities for BE Group and Betsson AB
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BEGR and Betsson is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding BE Group AB and Betsson AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betsson AB and BE Group 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 BE Group AB are associated (or correlated) with Betsson AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betsson AB has no effect on the direction of BE Group i.e., BE Group and Betsson AB go up and down completely randomly.
Pair Corralation between BE Group and Betsson AB
Assuming the 90 days trading horizon BE Group AB is expected to under-perform the Betsson AB. In addition to that, BE Group is 1.2 times more volatile than Betsson AB. It trades about -0.31 of its total potential returns per unit of risk. Betsson AB is currently generating about 0.2 per unit of volatility. If you would invest 13,808 in Betsson AB on August 29, 2024 and sell it today you would earn a total of 616.00 from holding Betsson AB or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Group AB vs. Betsson AB
Performance |
| Timeline |
| BE Group AB |
| Betsson AB |
BE Group and Betsson AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Group and Betsson AB
The main advantage of trading using opposite BE Group and Betsson AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Group position performs unexpectedly, Betsson AB 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 Betsson AB will offset losses from the drop in Betsson AB's long position.| BE Group vs. Addtech AB | BE Group vs. Teqnion AB | BE Group vs. Vitec Software Group | BE Group vs. Lagercrantz Group AB |
| Betsson AB vs. Kambi Group PLC | Betsson AB vs. Catena Media plc | Betsson AB vs. Evolution AB | Betsson AB vs. Tele2 AB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| 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 | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |