Correlation Between Embracer Group and Tele2 AB
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By analyzing existing cross correlation between Embracer Group AB and Tele2 AB, you can compare the effects of market volatilities on Embracer Group and Tele2 AB 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 Tele2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Tele2 AB.
Diversification Opportunities for Embracer Group and Tele2 AB
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Tele2 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Tele2 AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tele2 AB 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 Tele2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tele2 AB has no effect on the direction of Embracer Group i.e., Embracer Group and Tele2 AB go up and down completely randomly.
Pair Corralation between Embracer Group and Tele2 AB
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Tele2 AB. In addition to that, Embracer Group is 3.19 times more volatile than Tele2 AB. It trades about 0.0 of its total potential returns per unit of risk. Tele2 AB is currently generating about 0.06 per unit of volatility. If you would invest 8,159 in Tele2 AB on September 4, 2024 and sell it today you would earn a total of 3,356 from holding Tele2 AB or generate 41.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Tele2 AB
Performance |
| Timeline |
| Embracer Group AB |
| Tele2 AB |
Embracer Group and Tele2 AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Tele2 AB
The main advantage of trading using opposite Embracer Group and Tele2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Tele2 AB 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 Tele2 AB will offset losses from the drop in Tele2 AB'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 |
| Tele2 AB vs. Embracer Group AB | Tele2 AB vs. Samhllsbyggnadsbolaget i Norden | Tele2 AB vs. Evolution AB | Tele2 AB vs. Stillfront 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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