Correlation Between Betsson AB and Sileon AB
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Sileon 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 Sileon 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 Sileon AB, you can compare the effects of market volatilities on Betsson AB and Sileon 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 Sileon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Sileon AB.
Diversification Opportunities for Betsson AB and Sileon AB
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Betsson and Sileon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Sileon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sileon 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 Sileon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sileon AB has no effect on the direction of Betsson AB i.e., Betsson AB and Sileon AB go up and down completely randomly.
Pair Corralation between Betsson AB and Sileon AB
Assuming the 90 days trading horizon Betsson AB is expected to generate 0.28 times more return on investment than Sileon AB. However, Betsson AB is 3.51 times less risky than Sileon AB. It trades about 0.07 of its potential returns per unit of risk. Sileon AB is currently generating about -0.08 per unit of risk. If you would invest 7,960 in Betsson AB on October 12, 2024 and sell it today you would earn a total of 6,086 from holding Betsson AB or generate 76.46% 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. Sileon AB
Performance |
| Timeline |
| Betsson AB |
| Sileon AB |
Betsson AB and Sileon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betsson AB and Sileon AB
The main advantage of trading using opposite Betsson AB and Sileon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Sileon 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 Sileon AB will offset losses from the drop in Sileon AB'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 |
| Sileon AB vs. Invisio Communications AB | Sileon AB vs. Online Brands Nordic | Sileon AB vs. Redsense Medical AB | Sileon AB vs. Axfood 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
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |