Correlation Between Storytel and Millicom International
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By analyzing existing cross correlation between Storytel AB and Millicom International Cellular, you can compare the effects of market volatilities on Storytel and Millicom International 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 Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Millicom International.
Diversification Opportunities for Storytel and Millicom International
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Storytel and Millicom is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International 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 Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of Storytel i.e., Storytel and Millicom International go up and down completely randomly.
Pair Corralation between Storytel and Millicom International
Assuming the 90 days trading horizon Storytel is expected to generate 2.16 times less return on investment than Millicom International. But when comparing it to its historical volatility, Storytel AB is 1.02 times less risky than Millicom International. It trades about 0.09 of its potential returns per unit of risk. Millicom International Cellular is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 26,860 in Millicom International Cellular on October 22, 2024 and sell it today you would earn a total of 2,620 from holding Millicom International Cellular or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Storytel AB vs. Millicom International Cellula
Performance |
| Timeline |
| Storytel AB |
| Millicom International |
Storytel and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storytel and Millicom International
The main advantage of trading using opposite Storytel and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Millicom International 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 Millicom International will offset losses from the drop in Millicom International's long position.| Storytel vs. Stillfront Group AB | Storytel vs. Embracer Group AB | Storytel vs. Sinch AB | Storytel vs. Kambi Group PLC |
| Millicom International vs. Tele2 AB | Millicom International vs. Telia Company AB | Millicom International vs. Kinnevik Investment AB | Millicom International vs. Intrum Justitia 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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