Correlation Between Betsson AB and Acroud AB
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Acroud 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 Betsson AB and Acroud AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betsson AB and Acroud AB, you can compare the effects of market volatilities on Betsson AB and Acroud 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 Betsson AB with a short position of Acroud AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Acroud AB.
Diversification Opportunities for Betsson AB and Acroud AB
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Betsson and Acroud is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Acroud AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acroud AB and Betsson AB 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 Betsson AB are associated (or correlated) with Acroud AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acroud AB has no effect on the direction of Betsson AB i.e., Betsson AB and Acroud AB go up and down completely randomly.
Pair Corralation between Betsson AB and Acroud AB
Assuming the 90 days trading horizon Betsson AB is expected to generate 0.27 times more return on investment than Acroud AB. However, Betsson AB is 3.64 times less risky than Acroud AB. It trades about 0.03 of its potential returns per unit of risk. Acroud AB is currently generating about -0.15 per unit of risk. If you would invest 13,892 in Betsson AB on August 31, 2024 and sell it today you would earn a total of 76.00 from holding Betsson AB or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Betsson AB vs. Acroud AB
Performance |
| Timeline |
| Betsson AB |
| Acroud AB |
Betsson AB and Acroud AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betsson AB and Acroud AB
The main advantage of trading using opposite Betsson AB and Acroud AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Acroud 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 Acroud AB will offset losses from the drop in Acroud AB's long position.The idea behind Betsson AB and Acroud AB 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.| Acroud AB vs. Raketech Group Holding | Acroud AB vs. Catena Media plc | Acroud AB vs. Enad Global 7 | Acroud AB vs. Better Collective |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |