Correlation Between Ctek AB and Truecaller
Can any of the company-specific risk be diversified away by investing in both Ctek AB 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 Ctek AB and Truecaller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ctek AB and Truecaller AB, you can compare the effects of market volatilities on Ctek AB 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 Ctek AB with a short position of Truecaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ctek AB and Truecaller.
Diversification Opportunities for Ctek AB and Truecaller
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ctek and Truecaller is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ctek AB and Truecaller AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truecaller AB and Ctek 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 Ctek 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 Ctek AB i.e., Ctek AB and Truecaller go up and down completely randomly.
Pair Corralation between Ctek AB and Truecaller
Assuming the 90 days trading horizon Ctek AB is expected to generate 17.78 times less return on investment than Truecaller. In addition to that, Ctek AB is 1.02 times more volatile than Truecaller AB. It trades about 0.01 of its total potential returns per unit of risk. Truecaller AB is currently generating about 0.1 per unit of volatility. If you would invest 2,575 in Truecaller AB on August 25, 2024 and sell it today you would earn a total of 2,131 from holding Truecaller AB or generate 82.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ctek AB vs. Truecaller AB
Performance |
| Timeline |
| Ctek AB |
| Truecaller AB |
Ctek AB and Truecaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ctek AB and Truecaller
The main advantage of trading using opposite Ctek AB and Truecaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ctek AB 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.| Ctek AB vs. Hexatronic Group AB | Ctek AB vs. Sinch AB | Ctek AB vs. Truecaller AB | Ctek AB vs. Samhllsbyggnadsbolaget i Norden |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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