Correlation Between Acconeer and Truecaller
Can any of the company-specific risk be diversified away by investing in both Acconeer and Truecaller 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 Acconeer and Truecaller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acconeer AB and Truecaller AB, you can compare the effects of market volatilities on Acconeer and Truecaller 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 Acconeer with a short position of Truecaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acconeer and Truecaller.
Diversification Opportunities for Acconeer and Truecaller
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acconeer and Truecaller is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and Truecaller AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truecaller AB and Acconeer 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 Acconeer AB are associated (or correlated) with Truecaller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Truecaller AB has no effect on the direction of Acconeer i.e., Acconeer and Truecaller go up and down completely randomly.
Pair Corralation between Acconeer and Truecaller
Assuming the 90 days trading horizon Acconeer AB is expected to under-perform the Truecaller. But the stock apears to be less risky and, when comparing its historical volatility, Acconeer AB is 1.22 times less risky than Truecaller. The stock trades about -0.05 of its potential returns per unit of risk. The Truecaller AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,814 in Truecaller AB on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Truecaller AB or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acconeer AB vs. Truecaller AB
Performance |
| Timeline |
| Acconeer AB |
| Truecaller AB |
Acconeer and Truecaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acconeer and Truecaller
The main advantage of trading using opposite Acconeer and Truecaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer position performs unexpectedly, Truecaller 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 Truecaller will offset losses from the drop in Truecaller's long position.| Acconeer vs. Divio Technologies AB | Acconeer vs. XMReality AB | Acconeer vs. KABE Group AB | Acconeer vs. IAR Systems Group |
| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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