Correlation Between Terranet and Lime Technologies
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By analyzing existing cross correlation between Terranet AB and Lime Technologies AB, you can compare the effects of market volatilities on Terranet 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 Terranet with a short position of Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terranet and Lime Technologies.
Diversification Opportunities for Terranet and Lime Technologies
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Terranet and Lime is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Terranet 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 Terranet 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 Terranet 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 Terranet i.e., Terranet and Lime Technologies go up and down completely randomly.
Pair Corralation between Terranet and Lime Technologies
Assuming the 90 days trading horizon Terranet is expected to generate 12.03 times less return on investment than Lime Technologies. In addition to that, Terranet is 2.52 times more volatile than Lime Technologies AB. It trades about 0.0 of its total potential returns per unit of risk. Lime Technologies AB is currently generating about 0.05 per unit of volatility. If you would invest 21,387 in Lime Technologies AB on September 5, 2024 and sell it today you would earn a total of 14,613 from holding Lime Technologies AB or generate 68.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terranet AB vs. Lime Technologies AB
Performance |
| Timeline |
| Terranet AB |
| Lime Technologies |
Terranet and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terranet and Lime Technologies
The main advantage of trading using opposite Terranet and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terranet 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.| Terranet vs. Lime Technologies AB | Terranet vs. FormPipe Software AB | Terranet vs. Surgical Science Sweden | Terranet vs. Teqnion AB |
| Lime Technologies vs. Vitec Software Group | Lime Technologies vs. MIPS AB | Lime Technologies vs. Sinch AB | Lime Technologies vs. Stillfront Group 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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