Correlation Between Storskogen Group and Truecaller
Can any of the company-specific risk be diversified away by investing in both Storskogen Group and Truecaller 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 Storskogen Group and Truecaller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storskogen Group AB and Truecaller AB, you can compare the effects of market volatilities on Storskogen Group and Truecaller 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 Storskogen Group with a short position of Truecaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storskogen Group and Truecaller.
Diversification Opportunities for Storskogen Group and Truecaller
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Storskogen and Truecaller is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Storskogen Group AB and Truecaller AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truecaller AB and Storskogen 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 Storskogen Group AB are associated (or correlated) with Truecaller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Truecaller AB has no effect on the direction of Storskogen Group i.e., Storskogen Group and Truecaller go up and down completely randomly.
Pair Corralation between Storskogen Group and Truecaller
Assuming the 90 days trading horizon Storskogen Group is expected to generate 10.36 times less return on investment than Truecaller. But when comparing it to its historical volatility, Storskogen Group AB is 1.43 times less risky than Truecaller. It trades about 0.05 of its potential returns per unit of risk. Truecaller AB is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 5,185 in Truecaller AB on November 3, 2024 and sell it today you would earn a total of 1,415 from holding Truecaller AB or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storskogen Group AB vs. Truecaller AB
Performance |
| Timeline |
| Storskogen Group |
| Truecaller AB |
Storskogen Group and Truecaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storskogen Group and Truecaller
The main advantage of trading using opposite Storskogen Group and Truecaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storskogen Group position performs unexpectedly, Truecaller 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 Truecaller will offset losses from the drop in Truecaller's long position.| Storskogen Group vs. Samhllsbyggnadsbolaget i Norden | Storskogen Group vs. Sinch AB | Storskogen Group vs. Instalco Intressenter AB | Storskogen Group vs. Hexatronic Group AB |
| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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