Correlation Between Betsson AB and Stillfront Group
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Stillfront Group 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 Stillfront Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betsson AB and Stillfront Group AB, you can compare the effects of market volatilities on Betsson AB and Stillfront Group 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 Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Stillfront Group.
Diversification Opportunities for Betsson AB and Stillfront Group
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Betsson and Stillfront is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of Betsson AB i.e., Betsson AB and Stillfront Group go up and down completely randomly.
Pair Corralation between Betsson AB and Stillfront Group
Assuming the 90 days trading horizon Betsson AB is expected to generate 0.46 times more return on investment than Stillfront Group. However, Betsson AB is 2.17 times less risky than Stillfront Group. It trades about 0.2 of its potential returns per unit of risk. Stillfront Group AB is currently generating about 0.03 per unit of risk. If you would invest 12,460 in Betsson AB on August 28, 2024 and sell it today you would earn a total of 1,898 from holding Betsson AB or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Betsson AB vs. Stillfront Group AB
Performance |
| Timeline |
| Betsson AB |
| Stillfront Group |
Betsson AB and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betsson AB and Stillfront Group
The main advantage of trading using opposite Betsson AB and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Stillfront Group 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 Stillfront Group will offset losses from the drop in Stillfront Group'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 |
| Stillfront Group vs. Flexion Mobile PLC | Stillfront Group vs. iZafe Group AB | Stillfront Group vs. KABE Group AB | Stillfront Group vs. IAR Systems Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance |