Correlation Between Betsson AB and Better Collective

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

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

Diversification Opportunities for Betsson AB and Better Collective

0.43

Correlation Coefficient

Betsson AB  Better Collective

Very weak diversification

The 3 months correlation between Betsson and Better is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Betsson AB and Better Collective in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better Collective 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 Better Collective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better Collective has no effect on the direction of Betsson AB i.e., Betsson AB and Better Collective go up and down completely randomly.

Pair Corralation between Betsson AB and Better Collective

Assuming the 90 days trading horizon Betsson AB is expected to generate 2.78 times less return on investment than Better Collective. In addition to that, Betsson AB is 1.12 times more volatile than Better Collective. It trades about 0.05 of its total potential returns per unit of risk. Better Collective is currently generating about 0.14 per unit of volatility. If you would invest  12,200  in Better Collective on April 25, 2025 and sell it today you would earn a total of  2,400  from holding Better Collective or generate 19.67% return on investment over 90 days.

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

Betsson AB  vs.  Better Collective

Betsson AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Betsson AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Betsson AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Better Collective

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Better Collective are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Better Collective unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Betsson AB and Better Collective

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

The idea behind Betsson AB and Better Collective 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.