Correlation Between Betsson AB and Lime Technologies
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Lime Technologies 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 Lime Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betsson AB and Lime Technologies AB, you can compare the effects of market volatilities on Betsson AB and Lime Technologies 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 Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Lime Technologies.
Diversification Opportunities for Betsson AB and Lime Technologies
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Betsson and Lime is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies 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 Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of Betsson AB i.e., Betsson AB and Lime Technologies go up and down completely randomly.
Pair Corralation between Betsson AB and Lime Technologies
Assuming the 90 days trading horizon Betsson AB is expected to generate 1.22 times less return on investment than Lime Technologies. But when comparing it to its historical volatility, Betsson AB is 2.44 times less risky than Lime Technologies. It trades about 0.3 of its potential returns per unit of risk. Lime Technologies AB is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 34,100 in Lime Technologies AB on December 1, 2024 and sell it today you would earn a total of 3,550 from holding Lime Technologies AB or generate 10.41% 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. Lime Technologies AB
Performance |
| Timeline |
| Betsson AB |
| Lime Technologies |
Betsson AB and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betsson AB and Lime Technologies
The main advantage of trading using opposite Betsson AB and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| Betsson AB vs. Kambi Group PLC | Betsson AB vs. Catena Media plc | Betsson AB vs. Evolution AB | Betsson AB vs. Tele2 AB |
| Lime Technologies vs. Vitec Software Group | Lime Technologies vs. MIPS AB | Lime Technologies vs. Sinch AB | Lime Technologies vs. Stillfront Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |