Correlation Between Tele2 AB and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both Tele2 AB and Goodbye Kansas at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tele2 AB and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tele2 AB and Goodbye Kansas Group, you can compare the effects of market volatilities on Tele2 AB and Goodbye Kansas 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 Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tele2 AB and Goodbye Kansas.
Diversification Opportunities for Tele2 AB and Goodbye Kansas
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tele2 and Goodbye is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Tele2 AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group 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 Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Tele2 AB i.e., Tele2 AB and Goodbye Kansas go up and down completely randomly.
Pair Corralation between Tele2 AB and Goodbye Kansas
Assuming the 90 days trading horizon Tele2 AB is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, Tele2 AB is 4.2 times less risky than Goodbye Kansas. The stock trades about -0.2 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Goodbye Kansas Group on September 24, 2024 and sell it today you would earn a total of 13.00 from holding Goodbye Kansas Group or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tele2 AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| Tele2 AB |
| Goodbye Kansas Group |
Tele2 AB and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tele2 AB and Goodbye Kansas
The main advantage of trading using opposite Tele2 AB and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tele2 AB position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' 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 |
| Goodbye Kansas vs. Modern Times Group | Goodbye Kansas vs. Millicom International Cellular | Goodbye Kansas vs. Tele2 AB | Goodbye Kansas vs. BHG 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |