Correlation Between Oncopeptides and Betsson AB

Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Betsson AB 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 Oncopeptides and Betsson AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oncopeptides AB and Betsson AB, you can compare the effects of market volatilities on Oncopeptides and Betsson AB 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 Oncopeptides with a short position of Betsson AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Betsson AB.

Diversification Opportunities for Oncopeptides and Betsson AB

-0.75

Correlation Coefficient

Oncopeptides  Betsson AB

Pay attention - limited upside

The 3 months correlation between Oncopeptides and Betsson is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Betsson AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betsson AB and Oncopeptides 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 Oncopeptides AB are associated (or correlated) with Betsson AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betsson AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and Betsson AB go up and down completely randomly.

Pair Corralation between Oncopeptides and Betsson AB

Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Betsson AB. In addition to that, Oncopeptides is 2.56 times more volatile than Betsson AB. It trades about -0.08 of its total potential returns per unit of risk. Betsson AB is currently generating about 0.09 per unit of volatility. If you would invest  12,873  in Betsson AB on September 2, 2024 and sell it today you would earn a total of  1,095  from holding Betsson AB or generate 8.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Oncopeptides AB  vs.  Betsson AB

Oncopeptides AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oncopeptides AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Betsson AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Betsson AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Betsson AB may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Oncopeptides and Betsson AB

The main advantage of trading using opposite Oncopeptides and Betsson AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Betsson AB 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 Betsson AB will offset losses from the drop in Betsson AB's long position.

The idea behind Oncopeptides AB and Betsson AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.