Correlation Between Lipum AB and Storytel
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By analyzing existing cross correlation between Lipum AB and Storytel AB, you can compare the effects of market volatilities on Lipum AB and Storytel 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 Lipum AB with a short position of Storytel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipum AB and Storytel.
Diversification Opportunities for Lipum AB and Storytel
Poor diversification
The 3 months correlation between Lipum and Storytel is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lipum AB and Storytel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storytel AB and Lipum 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 Lipum AB are associated (or correlated) with Storytel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storytel AB has no effect on the direction of Lipum AB i.e., Lipum AB and Storytel go up and down completely randomly.
Pair Corralation between Lipum AB and Storytel
Assuming the 90 days trading horizon Lipum AB is expected to generate 1.34 times more return on investment than Storytel. However, Lipum AB is 1.34 times more volatile than Storytel AB. It trades about 0.2 of its potential returns per unit of risk. Storytel AB is currently generating about -0.32 per unit of risk. If you would invest 1,450 in Lipum AB on August 31, 2024 and sell it today you would earn a total of 170.00 from holding Lipum AB or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lipum AB vs. Storytel AB
Performance |
| Timeline |
| Lipum AB |
| Storytel AB |
Lipum AB and Storytel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipum AB and Storytel
The main advantage of trading using opposite Lipum AB and Storytel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipum AB position performs unexpectedly, Storytel 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 Storytel will offset losses from the drop in Storytel's long position.| Lipum AB vs. Ascelia Pharma AB | Lipum AB vs. NextCell Pharma AB | Lipum AB vs. Annexin Pharmaceuticals AB | Lipum AB vs. AlzeCure Pharma |
| Storytel vs. Stillfront Group AB | Storytel vs. Embracer Group AB | Storytel vs. Sinch AB | Storytel vs. Kambi Group PLC |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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