Correlation Between Stillfront Group and Lime Technologies

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

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

Diversification Opportunities for Stillfront Group and Lime Technologies

-0.42

Correlation Coefficient

Stillfront Group  Lime Technologies

Very good diversification

The 3 months correlation between Stillfront and Lime is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group 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 Stillfront Group 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 Stillfront Group 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 Stillfront Group i.e., Stillfront Group and Lime Technologies go up and down completely randomly.

Pair Corralation between Stillfront Group and Lime Technologies

Assuming the 90 days horizon Stillfront Group AB is expected to under-perform the Lime Technologies. In addition to that, Stillfront Group is 1.03 times more volatile than Lime Technologies AB. It trades about -0.25 of its total potential returns per unit of risk. Lime Technologies AB is currently generating about -0.04 per unit of volatility. If you would invest  36,850  in Lime Technologies AB on December 30, 2024 and sell it today you would lose (3,550) from holding Lime Technologies AB or give up 9.63% of portfolio value over 90 days.

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

Stillfront Group AB  vs.  Lime Technologies AB

Stillfront Group

Risk-Adjusted Performance

Very Weak

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

Lime Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lime Technologies AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Stillfront Group and Lime Technologies

The main advantage of trading using opposite Stillfront Group and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group 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.

The idea behind Stillfront Group AB and Lime Technologies 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..