Correlation Between Lime Technologies and Storytel
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By analyzing existing cross correlation between Lime Technologies AB and Storytel AB, you can compare the effects of market volatilities on Lime Technologies and Storytel 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 Storytel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lime Technologies and Storytel.
Diversification Opportunities for Lime Technologies and Storytel
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lime and Storytel is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lime Technologies AB and Storytel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storytel 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 Storytel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storytel AB has no effect on the direction of Lime Technologies i.e., Lime Technologies and Storytel go up and down completely randomly.
Pair Corralation between Lime Technologies and Storytel
Assuming the 90 days trading horizon Lime Technologies AB is expected to generate 1.12 times more return on investment than Storytel. However, Lime Technologies is 1.12 times more volatile than Storytel AB. It trades about 0.06 of its potential returns per unit of risk. Storytel AB is currently generating about -0.17 per unit of risk. If you would invest 33,450 in Lime Technologies AB on August 29, 2024 and sell it today you would earn a total of 950.00 from holding Lime Technologies AB or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lime Technologies AB vs. Storytel AB
Performance |
| Timeline |
| Lime Technologies |
| Storytel AB |
Lime Technologies and Storytel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lime Technologies and Storytel
The main advantage of trading using opposite Lime Technologies and Storytel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lime Technologies position performs unexpectedly, Storytel 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 Storytel will offset losses from the drop in Storytel's long position.| Lime Technologies vs. Lifco AB | Lime Technologies vs. Lagercrantz Group AB | Lime Technologies vs. Addtech AB | Lime Technologies vs. Instalco Intressenter AB |
| Storytel vs. Lifco AB | Storytel vs. Lagercrantz Group AB | Storytel vs. Addtech AB | Storytel vs. Instalco Intressenter 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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