Correlation Between Embracer Group and Tangiamo Touch
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By analyzing existing cross correlation between Embracer Group AB and Tangiamo Touch Technology, you can compare the effects of market volatilities on Embracer Group and Tangiamo Touch 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 Embracer Group with a short position of Tangiamo Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Tangiamo Touch.
Diversification Opportunities for Embracer Group and Tangiamo Touch
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embracer and Tangiamo is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Tangiamo Touch Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangiamo Touch Technology and Embracer 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 Embracer Group AB are associated (or correlated) with Tangiamo Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangiamo Touch Technology has no effect on the direction of Embracer Group i.e., Embracer Group and Tangiamo Touch go up and down completely randomly.
Pair Corralation between Embracer Group and Tangiamo Touch
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 1.04 times more return on investment than Tangiamo Touch. However, Embracer Group is 1.04 times more volatile than Tangiamo Touch Technology. It trades about 0.2 of its potential returns per unit of risk. Tangiamo Touch Technology is currently generating about -0.01 per unit of risk. If you would invest 20,022 in Embracer Group AB on November 2, 2024 and sell it today you would earn a total of 2,658 from holding Embracer Group AB or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Embracer Group AB vs. Tangiamo Touch Technology
Performance |
| Timeline |
| Embracer Group AB |
| Tangiamo Touch Technology |
Embracer Group and Tangiamo Touch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Tangiamo Touch
The main advantage of trading using opposite Embracer Group and Tangiamo Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Tangiamo Touch 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 Tangiamo Touch will offset losses from the drop in Tangiamo Touch's long position.| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group AB |
| Tangiamo Touch vs. XMReality AB | Tangiamo Touch vs. Enersize Oy | Tangiamo Touch vs. Mavshack publ AB | Tangiamo Touch vs. Serstech 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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