Correlation Between Nimbus Group and Truecaller
Can any of the company-specific risk be diversified away by investing in both Nimbus Group 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 Nimbus Group and Truecaller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nimbus Group AB and Truecaller AB, you can compare the effects of market volatilities on Nimbus Group 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 Nimbus Group with a short position of Truecaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nimbus Group and Truecaller.
Diversification Opportunities for Nimbus Group and Truecaller
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nimbus and Truecaller is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nimbus Group AB and Truecaller AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truecaller AB and Nimbus 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 Nimbus Group 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 Nimbus Group i.e., Nimbus Group and Truecaller go up and down completely randomly.
Pair Corralation between Nimbus Group and Truecaller
Assuming the 90 days trading horizon Nimbus Group AB is expected to under-perform the Truecaller. But the stock apears to be less risky and, when comparing its historical volatility, Nimbus Group AB is 1.16 times less risky than Truecaller. The stock trades about -0.04 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 3,673 in Truecaller AB on September 4, 2024 and sell it today you would earn a total of 1,412 from holding Truecaller AB or generate 38.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nimbus Group AB vs. Truecaller AB
Performance |
| Timeline |
| Nimbus Group AB |
| Truecaller AB |
Nimbus Group and Truecaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nimbus Group and Truecaller
The main advantage of trading using opposite Nimbus Group and Truecaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nimbus Group 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.| Nimbus Group vs. Truecaller AB | Nimbus Group vs. Dedicare AB | Nimbus Group vs. RVRC Holding AB | Nimbus Group vs. AddLife AB |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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