Correlation Between Sdiptech and Lime Technologies
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By analyzing existing cross correlation between Sdiptech AB and Lime Technologies AB, you can compare the effects of market volatilities on Sdiptech and Lime Technologies 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 Sdiptech with a short position of Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and Lime Technologies.
Diversification Opportunities for Sdiptech and Lime Technologies
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sdiptech and Lime is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies and Sdiptech 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 Sdiptech AB are associated (or correlated) with Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of Sdiptech i.e., Sdiptech and Lime Technologies go up and down completely randomly.
Pair Corralation between Sdiptech and Lime Technologies
Assuming the 90 days trading horizon Sdiptech AB is expected to under-perform the Lime Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Sdiptech AB is 4.02 times less risky than Lime Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Lime Technologies AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. Lime Technologies AB
Performance |
| Timeline |
| Sdiptech AB |
| Lime Technologies |
Sdiptech and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and Lime Technologies
The main advantage of trading using opposite Sdiptech and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| Sdiptech vs. AB Sagax | Sdiptech vs. ALM Equity AB | Sdiptech vs. KABE Group AB | Sdiptech vs. IAR Systems Group |
| Lime Technologies vs. Lifco AB | Lime Technologies vs. Lagercrantz Group AB | Lime Technologies vs. Addtech AB | Lime Technologies 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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