Correlation Between Lime Technologies and Greater Than
Can any of the company-specific risk be diversified away by investing in both Lime Technologies and Greater Than 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 Lime Technologies and Greater Than into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lime Technologies AB and Greater Than AB, you can compare the effects of market volatilities on Lime Technologies and Greater Than 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 Lime Technologies with a short position of Greater Than. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lime Technologies and Greater Than.
Diversification Opportunities for Lime Technologies and Greater Than
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lime and Greater is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lime Technologies AB and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than AB and Lime Technologies 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 Lime Technologies AB are associated (or correlated) with Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of Lime Technologies i.e., Lime Technologies and Greater Than go up and down completely randomly.
Pair Corralation between Lime Technologies and Greater Than
Assuming the 90 days trading horizon Lime Technologies AB is expected to generate 0.58 times more return on investment than Greater Than. However, Lime Technologies AB is 1.72 times less risky than Greater Than. It trades about 0.03 of its potential returns per unit of risk. Greater Than AB is currently generating about -0.08 per unit of risk. If you would invest 33,889 in Lime Technologies AB on September 1, 2024 and sell it today you would earn a total of 3,461 from holding Lime Technologies AB or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lime Technologies AB vs. Greater Than AB
Performance |
| Timeline |
| Lime Technologies |
| Greater Than AB |
Lime Technologies and Greater Than Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lime Technologies and Greater Than
The main advantage of trading using opposite Lime Technologies and Greater Than positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lime Technologies position performs unexpectedly, Greater Than 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 Greater Than will offset losses from the drop in Greater Than's long position.| Lime Technologies vs. Catena Media plc | Lime Technologies vs. Kambi Group PLC | Lime Technologies vs. Betsson AB | Lime Technologies vs. Invisio Communications AB |
| Greater Than vs. BIMobject AB | Greater Than vs. IAR Systems Group | Greater Than vs. FormPipe Software AB | Greater Than vs. Generic Sweden publ |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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