Correlation Between Tele2 AB and Embracer Group
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By analyzing existing cross correlation between Tele2 AB and Embracer Group AB, you can compare the effects of market volatilities on Tele2 AB and Embracer Group 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 Tele2 AB with a short position of Embracer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tele2 AB and Embracer Group.
Diversification Opportunities for Tele2 AB and Embracer Group
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tele2 and Embracer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tele2 AB and Embracer Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embracer Group AB and Tele2 AB 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 Tele2 AB are associated (or correlated) with Embracer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embracer Group AB has no effect on the direction of Tele2 AB i.e., Tele2 AB and Embracer Group go up and down completely randomly.
Pair Corralation between Tele2 AB and Embracer Group
Assuming the 90 days trading horizon Tele2 AB is expected to generate 0.33 times more return on investment than Embracer Group. However, Tele2 AB is 3.07 times less risky than Embracer Group. It trades about 0.13 of its potential returns per unit of risk. Embracer Group AB is currently generating about 0.03 per unit of risk. If you would invest 8,035 in Tele2 AB on September 4, 2024 and sell it today you would earn a total of 3,480 from holding Tele2 AB or generate 43.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tele2 AB vs. Embracer Group AB
Performance |
| Timeline |
| Tele2 AB |
| Embracer Group AB |
Tele2 AB and Embracer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tele2 AB and Embracer Group
The main advantage of trading using opposite Tele2 AB and Embracer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tele2 AB position performs unexpectedly, Embracer Group 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 Embracer Group will offset losses from the drop in Embracer Group's long position.| Tele2 AB vs. Embracer Group AB | Tele2 AB vs. Samhllsbyggnadsbolaget i Norden | Tele2 AB vs. Evolution AB | Tele2 AB vs. Stillfront Group AB |
| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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