Correlation Between Storytel and IAR Systems
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By analyzing existing cross correlation between Storytel AB and IAR Systems Group, you can compare the effects of market volatilities on Storytel and IAR Systems 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 IAR Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and IAR Systems.
Diversification Opportunities for Storytel and IAR Systems
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Storytel and IAR is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and IAR Systems Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAR Systems Group 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 IAR Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAR Systems Group has no effect on the direction of Storytel i.e., Storytel and IAR Systems go up and down completely randomly.
Pair Corralation between Storytel and IAR Systems
Assuming the 90 days trading horizon Storytel AB is expected to under-perform the IAR Systems. But the stock apears to be less risky and, when comparing its historical volatility, Storytel AB is 1.08 times less risky than IAR Systems. The stock trades about -0.32 of its potential returns per unit of risk. The IAR Systems Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 12,500 in IAR Systems Group on August 31, 2024 and sell it today you would earn a total of 950.00 from holding IAR Systems Group or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storytel AB vs. IAR Systems Group
Performance |
| Timeline |
| Storytel AB |
| IAR Systems Group |
Storytel and IAR Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storytel and IAR Systems
The main advantage of trading using opposite Storytel and IAR Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, IAR Systems 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 IAR Systems will offset losses from the drop in IAR Systems' long position.| Storytel vs. Stillfront Group AB | Storytel vs. Embracer Group AB | Storytel vs. Sinch AB | Storytel vs. Kambi Group PLC |
| IAR Systems vs. CellaVision AB | IAR Systems vs. HMS Networks AB | IAR Systems vs. Enea AB | IAR Systems vs. Know IT 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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