Correlation Between Storytel and Bawat Water
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By analyzing existing cross correlation between Storytel AB and Bawat Water Technologies, you can compare the effects of market volatilities on Storytel and Bawat Water 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 Storytel with a short position of Bawat Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Bawat Water.
Diversification Opportunities for Storytel and Bawat Water
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Storytel and Bawat is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Bawat Water Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bawat Water Technologies and Storytel 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 Storytel AB are associated (or correlated) with Bawat Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bawat Water Technologies has no effect on the direction of Storytel i.e., Storytel and Bawat Water go up and down completely randomly.
Pair Corralation between Storytel and Bawat Water
Assuming the 90 days trading horizon Storytel AB is expected to generate 0.92 times more return on investment than Bawat Water. However, Storytel AB is 1.09 times less risky than Bawat Water. It trades about 0.27 of its potential returns per unit of risk. Bawat Water Technologies is currently generating about -0.13 per unit of risk. If you would invest 7,755 in Storytel AB on December 1, 2024 and sell it today you would earn a total of 1,575 from holding Storytel AB or generate 20.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Storytel AB vs. Bawat Water Technologies
Performance |
| Timeline |
| Storytel AB |
| Bawat Water Technologies |
Storytel and Bawat Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storytel and Bawat Water
The main advantage of trading using opposite Storytel and Bawat Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Bawat Water 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 Bawat Water will offset losses from the drop in Bawat Water's long position.| Storytel vs. Stillfront Group AB | Storytel vs. Embracer Group AB | Storytel vs. Sinch AB | Storytel vs. Kambi Group PLC |
| Bawat Water vs. Systemair AB | Bawat Water vs. Invisio Communications AB | Bawat Water vs. Nordic Iron Ore | Bawat Water vs. Investment AB Oresund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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