Correlation Between AddLife AB and Storytel
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By analyzing existing cross correlation between AddLife AB and Storytel AB, you can compare the effects of market volatilities on AddLife AB and Storytel 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 AddLife AB with a short position of Storytel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AddLife AB and Storytel.
Diversification Opportunities for AddLife AB and Storytel
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AddLife and Storytel is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AddLife AB and Storytel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storytel AB and AddLife 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 AddLife AB are associated (or correlated) with Storytel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storytel AB has no effect on the direction of AddLife AB i.e., AddLife AB and Storytel go up and down completely randomly.
Pair Corralation between AddLife AB and Storytel
Assuming the 90 days trading horizon AddLife AB is expected to generate 1.53 times less return on investment than Storytel. But when comparing it to its historical volatility, AddLife AB is 1.3 times less risky than Storytel. It trades about 0.11 of its potential returns per unit of risk. Storytel AB is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,436 in Storytel AB on September 24, 2024 and sell it today you would earn a total of 4,424 from holding Storytel AB or generate 181.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AddLife AB vs. Storytel AB
Performance |
| Timeline |
| AddLife AB |
| Storytel AB |
AddLife AB and Storytel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AddLife AB and Storytel
The main advantage of trading using opposite AddLife AB and Storytel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AddLife AB position performs unexpectedly, Storytel 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 Storytel will offset losses from the drop in Storytel's long position.| AddLife AB vs. Addtech AB | AddLife AB vs. Lifco AB | AddLife AB vs. Indutrade AB | AddLife AB vs. Lagercrantz Group AB |
| Storytel vs. Lifco AB | Storytel vs. Lagercrantz Group AB | Storytel vs. Instalco Intressenter AB | Storytel vs. AddLife 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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