Correlation Between Lime Technologies and Studsvik
Can any of the company-specific risk be diversified away by investing in both Lime Technologies and Studsvik 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 Lime Technologies and Studsvik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lime Technologies AB and Studsvik AB, you can compare the effects of market volatilities on Lime Technologies and Studsvik 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 Lime Technologies with a short position of Studsvik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lime Technologies and Studsvik.
Diversification Opportunities for Lime Technologies and Studsvik
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lime and Studsvik is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lime Technologies AB and Studsvik AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Studsvik AB and Lime Technologies 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 Lime Technologies AB are associated (or correlated) with Studsvik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Studsvik AB has no effect on the direction of Lime Technologies i.e., Lime Technologies and Studsvik go up and down completely randomly.
Pair Corralation between Lime Technologies and Studsvik
Assuming the 90 days trading horizon Lime Technologies is expected to generate 31.89 times less return on investment than Studsvik. But when comparing it to its historical volatility, Lime Technologies AB is 1.61 times less risky than Studsvik. It trades about 0.01 of its potential returns per unit of risk. Studsvik AB is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 18,600 in Studsvik AB on September 2, 2025 and sell it today you would earn a total of 11,400 from holding Studsvik AB or generate 61.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lime Technologies AB vs. Studsvik AB
Performance |
| Timeline |
| Lime Technologies |
| Studsvik AB |
Lime Technologies and Studsvik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lime Technologies and Studsvik
The main advantage of trading using opposite Lime Technologies and Studsvik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lime Technologies position performs unexpectedly, Studsvik 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 Studsvik will offset losses from the drop in Studsvik's long position.| Lime Technologies vs. Axfood AB | Lime Technologies vs. Media and Games | Lime Technologies vs. Gaming Corps AB | Lime Technologies vs. Scandic Hotels Group |
| Studsvik vs. Vitec Software Group | Studsvik vs. FormPipe Software AB | Studsvik vs. Nordea Bank Abp | Studsvik vs. Svenska Handelsbanken 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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