Correlation Between Sinch AB and Thule Group
Can any of the company-specific risk be diversified away by investing in both Sinch AB and Thule Group 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 Sinch AB and Thule Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinch AB and Thule Group AB, you can compare the effects of market volatilities on Sinch AB and Thule Group 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 Sinch AB with a short position of Thule Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinch AB and Thule Group.
Diversification Opportunities for Sinch AB and Thule Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sinch and Thule is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sinch AB and Thule Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thule Group AB and Sinch 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 Sinch AB are associated (or correlated) with Thule Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thule Group AB has no effect on the direction of Sinch AB i.e., Sinch AB and Thule Group go up and down completely randomly.
Pair Corralation between Sinch AB and Thule Group
Assuming the 90 days trading horizon Sinch AB is expected to under-perform the Thule Group. In addition to that, Sinch AB is 1.73 times more volatile than Thule Group AB. It trades about -0.01 of its total potential returns per unit of risk. Thule Group AB is currently generating about 0.05 per unit of volatility. If you would invest 30,755 in Thule Group AB on September 1, 2024 and sell it today you would earn a total of 3,585 from holding Thule Group AB or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinch AB vs. Thule Group AB
Performance |
| Timeline |
| Sinch AB |
| Thule Group AB |
Sinch AB and Thule Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinch AB and Thule Group
The main advantage of trading using opposite Sinch AB and Thule Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinch AB position performs unexpectedly, Thule Group 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 Thule Group will offset losses from the drop in Thule Group's long position.| Sinch AB vs. Checkin Group AB | Sinch AB vs. Midsummer AB | Sinch AB vs. Hexatronic Group AB | Sinch AB vs. Cint Group AB |
| Thule Group vs. MIPS AB | Thule Group vs. NIBE Industrier AB | Thule Group vs. Dometic Group AB | Thule Group vs. Husqvarna 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |