Correlation Between Storytel and Essity AB
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By analyzing existing cross correlation between Storytel AB and Essity AB, you can compare the effects of market volatilities on Storytel and Essity AB 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 Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Essity AB.
Diversification Opportunities for Storytel and Essity AB
Pay attention - limited upside
The 3 months correlation between Storytel and Essity is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity AB 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 Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of Storytel i.e., Storytel and Essity AB go up and down completely randomly.
Pair Corralation between Storytel and Essity AB
Assuming the 90 days trading horizon Storytel AB is expected to generate 2.48 times more return on investment than Essity AB. However, Storytel is 2.48 times more volatile than Essity AB. It trades about 0.21 of its potential returns per unit of risk. Essity AB is currently generating about 0.02 per unit of risk. If you would invest 6,200 in Storytel AB on September 19, 2024 and sell it today you would earn a total of 575.00 from holding Storytel AB or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Storytel AB vs. Essity AB
Performance |
| Timeline |
| Storytel AB |
| Essity AB |
Storytel and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storytel and Essity AB
The main advantage of trading using opposite Storytel and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Essity AB 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 Essity AB will offset losses from the drop in Essity AB's long position.The idea behind Storytel AB and Essity AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. ASSA ABLOY AB | Essity AB vs. AB Electrolux | Essity AB vs. AB SKF |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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