Correlation Between Betsson AB and Tangiamo Touch
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Tangiamo Touch 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 Tangiamo Touch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betsson AB and Tangiamo Touch Technology, you can compare the effects of market volatilities on Betsson AB and Tangiamo Touch 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 Tangiamo Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Tangiamo Touch.
Diversification Opportunities for Betsson AB and Tangiamo Touch
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Betsson and Tangiamo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Tangiamo Touch Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangiamo Touch Technology 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 Tangiamo Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangiamo Touch Technology has no effect on the direction of Betsson AB i.e., Betsson AB and Tangiamo Touch go up and down completely randomly.
Pair Corralation between Betsson AB and Tangiamo Touch
Assuming the 90 days trading horizon Betsson AB is expected to under-perform the Tangiamo Touch. But the stock apears to be less risky and, when comparing its historical volatility, Betsson AB is 7.61 times less risky than Tangiamo Touch. The stock trades about -0.03 of its potential returns per unit of risk. The Tangiamo Touch Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Tangiamo Touch Technology on October 20, 2024 and sell it today you would earn a total of 4.00 from holding Tangiamo Touch Technology or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.53% |
| Values | Daily Returns |
Betsson AB vs. Tangiamo Touch Technology
Performance |
| Timeline |
| Betsson AB |
| Tangiamo Touch Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Betsson AB and Tangiamo Touch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betsson AB and Tangiamo Touch
The main advantage of trading using opposite Betsson AB and Tangiamo Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Tangiamo Touch 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 Tangiamo Touch will offset losses from the drop in Tangiamo Touch'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 |
| Tangiamo Touch vs. Evolution AB | Tangiamo Touch vs. Embracer Group AB | Tangiamo Touch vs. Betsson AB | Tangiamo Touch vs. Catena Media plc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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