Correlation Between Garo AB and Tellusgruppen
Can any of the company-specific risk be diversified away by investing in both Garo AB and Tellusgruppen 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 Garo AB and Tellusgruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garo AB and Tellusgruppen AB, you can compare the effects of market volatilities on Garo AB and Tellusgruppen 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 Garo AB with a short position of Tellusgruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garo AB and Tellusgruppen.
Diversification Opportunities for Garo AB and Tellusgruppen
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garo and Tellusgruppen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Garo AB and Tellusgruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellusgruppen AB and Garo 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 Garo AB are associated (or correlated) with Tellusgruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellusgruppen AB has no effect on the direction of Garo AB i.e., Garo AB and Tellusgruppen go up and down completely randomly.
Pair Corralation between Garo AB and Tellusgruppen
Assuming the 90 days trading horizon Garo AB is expected to under-perform the Tellusgruppen. In addition to that, Garo AB is 1.12 times more volatile than Tellusgruppen AB. It trades about -0.1 of its total potential returns per unit of risk. Tellusgruppen AB is currently generating about 0.0 per unit of volatility. If you would invest 838.00 in Tellusgruppen AB on September 2, 2024 and sell it today you would lose (148.00) from holding Tellusgruppen AB or give up 17.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garo AB vs. Tellusgruppen AB
Performance |
| Timeline |
| Garo AB |
| Tellusgruppen AB |
Garo AB and Tellusgruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garo AB and Tellusgruppen
The main advantage of trading using opposite Garo AB and Tellusgruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garo AB position performs unexpectedly, Tellusgruppen 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 Tellusgruppen will offset losses from the drop in Tellusgruppen's long position.| Garo AB vs. Samhllsbyggnadsbolaget i Norden | Garo AB vs. Sinch AB | Garo AB vs. Embracer Group AB | Garo AB vs. Evolution AB |
| Tellusgruppen vs. Image Systems AB | Tellusgruppen vs. Garo AB | Tellusgruppen vs. SECITS Holding AB | Tellusgruppen vs. Ayima 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |