Correlation Between Storytel and Smart Eye
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By analyzing existing cross correlation between Storytel AB and Smart Eye AB, you can compare the effects of market volatilities on Storytel and Smart Eye 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 Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Smart Eye.
Diversification Opportunities for Storytel and Smart Eye
Pay attention - limited upside
The 3 months correlation between Storytel and Smart is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye 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 Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Storytel i.e., Storytel and Smart Eye go up and down completely randomly.
Pair Corralation between Storytel and Smart Eye
Assuming the 90 days trading horizon Storytel AB is expected to generate 0.76 times more return on investment than Smart Eye. However, Storytel AB is 1.31 times less risky than Smart Eye. It trades about 0.08 of its potential returns per unit of risk. Smart Eye AB is currently generating about 0.01 per unit of risk. If you would invest 3,790 in Storytel AB on August 24, 2024 and sell it today you would earn a total of 2,290 from holding Storytel AB or generate 60.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storytel AB vs. Smart Eye AB
Performance |
| Timeline |
| Storytel AB |
| Smart Eye AB |
Storytel and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storytel and Smart Eye
The main advantage of trading using opposite Storytel and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye's long position.| Storytel vs. Lifco AB | Storytel vs. Lagercrantz Group AB | Storytel vs. Addtech AB | Storytel vs. Instalco Intressenter AB |
| Smart Eye vs. Vitec Software Group | Smart Eye vs. Nitro Games Oyj | Smart Eye vs. Indutrade AB | Smart Eye vs. Beowulf Mining PLC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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