Correlation Between Evolution and Tangiamo Touch
Can any of the company-specific risk be diversified away by investing in both Evolution and Tangiamo Touch 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 Evolution and Tangiamo Touch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution AB and Tangiamo Touch Technology, you can compare the effects of market volatilities on Evolution 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 Evolution with a short position of Tangiamo Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution and Tangiamo Touch.
Diversification Opportunities for Evolution and Tangiamo Touch
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Evolution and Tangiamo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Evolution 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 Evolution 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 Evolution 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 Evolution i.e., Evolution and Tangiamo Touch go up and down completely randomly.
Pair Corralation between Evolution and Tangiamo Touch
Assuming the 90 days trading horizon Evolution AB is expected to generate 0.07 times more return on investment than Tangiamo Touch. However, Evolution AB is 14.15 times less risky than Tangiamo Touch. It trades about -0.22 of its potential returns per unit of risk. Tangiamo Touch Technology is currently generating about -0.3 per unit of risk. If you would invest 100,000 in Evolution AB on September 3, 2024 and sell it today you would lose (4,800) from holding Evolution AB or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution AB vs. Tangiamo Touch Technology
Performance |
| Timeline |
| Evolution AB |
| Tangiamo Touch Technology |
Evolution and Tangiamo Touch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution and Tangiamo Touch
The main advantage of trading using opposite Evolution and Tangiamo Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution 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.| Evolution vs. Embracer Group AB | Evolution vs. Sinch AB | Evolution vs. Kambi Group PLC | Evolution vs. Samhllsbyggnadsbolaget i Norden |
| Tangiamo Touch vs. Kambi Group PLC | Tangiamo Touch vs. Betsson AB | Tangiamo Touch vs. Evolution AB | Tangiamo Touch vs. Embracer 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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