Correlation Between Betsson AB and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Betsson AB and Checkin Group 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 Checkin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betsson AB and Checkin Group AB, you can compare the effects of market volatilities on Betsson AB and Checkin Group 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 Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betsson AB and Checkin Group.
Diversification Opportunities for Betsson AB and Checkin Group
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Betsson and Checkin is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin Group AB 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 Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Betsson AB i.e., Betsson AB and Checkin Group go up and down completely randomly.
Pair Corralation between Betsson AB and Checkin Group
Assuming the 90 days trading horizon Betsson AB is expected to generate 0.41 times more return on investment than Checkin Group. However, Betsson AB is 2.45 times less risky than Checkin Group. It trades about 0.11 of its potential returns per unit of risk. Checkin Group AB is currently generating about -0.13 per unit of risk. If you would invest 12,520 in Betsson AB on September 26, 2024 and sell it today you would earn a total of 1,366 from holding Betsson AB or generate 10.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Betsson AB vs. Checkin Group AB
Performance |
Timeline |
Betsson AB |
Checkin Group AB |
Betsson AB and Checkin Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Betsson AB and Checkin Group
The main advantage of trading using opposite Betsson AB and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betsson AB position performs unexpectedly, Checkin Group 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 Checkin Group will offset losses from the drop in Checkin Group's long position.Betsson AB vs. XMReality AB | Betsson AB vs. Mavshack publ AB | Betsson AB vs. Serstech AB | Betsson AB vs. Mekonomen AB |
Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Money Managers Screen money managers from public funds and ETFs managed around the world |