Correlation Between Betsson AB and Investor
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Investor 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 Investor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betsson AB and Investor AB ser, you can compare the effects of market volatilities on Betsson AB and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Investor.
Diversification Opportunities for Betsson AB and Investor
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Betsson and Investor is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB ser 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of Betsson AB i.e., Betsson AB and Investor go up and down completely randomly.
Pair Corralation between Betsson AB and Investor
Assuming the 90 days trading horizon Betsson AB is expected to generate 1.82 times more return on investment than Investor. However, Betsson AB is 1.82 times more volatile than Investor AB ser. It trades about 0.08 of its potential returns per unit of risk. Investor AB ser is currently generating about 0.1 per unit of risk. If you would invest 7,963 in Betsson AB on November 2, 2024 and sell it today you would earn a total of 6,899 from holding Betsson AB or generate 86.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Betsson AB vs. Investor AB ser
Performance |
| Timeline |
| Betsson AB |
| Investor AB ser |
Betsson AB and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betsson AB and Investor
The main advantage of trading using opposite Betsson AB and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor's long position.| Betsson AB vs. Kambi Group PLC | Betsson AB vs. Catena Media plc | Betsson AB vs. Evolution AB | Betsson AB vs. Tele2 AB |
| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
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 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.
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