Correlation Between Storytel and Dow Jones
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By analyzing existing cross correlation between Storytel AB and Dow Jones Industrial, you can compare the effects of market volatilities on Storytel and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Dow Jones.
Diversification Opportunities for Storytel and Dow Jones
Poor diversification
The 3 months correlation between Storytel and Dow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Storytel i.e., Storytel and Dow Jones go up and down completely randomly.
Pair Corralation between Storytel and Dow Jones
Assuming the 90 days trading horizon Storytel AB is expected to generate 3.15 times more return on investment than Dow Jones. However, Storytel is 3.15 times more volatile than Dow Jones Industrial. It trades about 0.22 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of risk. If you would invest 4,826 in Storytel AB on August 25, 2024 and sell it today you would earn a total of 1,294 from holding Storytel AB or generate 26.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storytel AB vs. Dow Jones Industrial
Performance |
| Timeline |
Storytel and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Storytel AB
Pair trading matchups for Storytel
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Storytel and Dow Jones
The main advantage of trading using opposite Storytel and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Storytel vs. Stillfront Group AB | Storytel vs. Embracer Group AB | Storytel vs. Sinch AB | Storytel vs. Kambi Group PLC |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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