Correlation Between Thule Group and Fastator
Can any of the company-specific risk be diversified away by investing in both Thule Group and Fastator 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 Thule Group and Fastator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thule Group AB and Fastator AB, you can compare the effects of market volatilities on Thule Group and Fastator 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 Thule Group with a short position of Fastator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thule Group and Fastator.
Diversification Opportunities for Thule Group and Fastator
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thule and Fastator is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Thule Group AB and Fastator AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastator AB and Thule Group 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 Thule Group AB are associated (or correlated) with Fastator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastator AB has no effect on the direction of Thule Group i.e., Thule Group and Fastator go up and down completely randomly.
Pair Corralation between Thule Group and Fastator
Assuming the 90 days trading horizon Thule Group AB is expected to generate 0.31 times more return on investment than Fastator. However, Thule Group AB is 3.22 times less risky than Fastator. It trades about 0.04 of its potential returns per unit of risk. Fastator AB is currently generating about -0.02 per unit of risk. If you would invest 27,439 in Thule Group AB on August 31, 2024 and sell it today you would earn a total of 6,901 from holding Thule Group AB or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Thule Group AB vs. Fastator AB
Performance |
| Timeline |
| Thule Group AB |
| Fastator AB |
Thule Group and Fastator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thule Group and Fastator
The main advantage of trading using opposite Thule Group and Fastator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thule Group position performs unexpectedly, Fastator 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 Fastator will offset losses from the drop in Fastator's long position.| Thule Group vs. MIPS AB | Thule Group vs. NIBE Industrier AB | Thule Group vs. Dometic Group AB | Thule Group vs. Husqvarna AB |
| Fastator vs. FastPartner AB | Fastator vs. Svolder AB | Fastator vs. Fastighets AB Balder | Fastator vs. Cibus Nordic Real |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |