Correlation Between Thule Group and Getinge AB
Can any of the company-specific risk be diversified away by investing in both Thule Group and Getinge AB 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 Getinge AB 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 Getinge AB ser, you can compare the effects of market volatilities on Thule Group and Getinge AB 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 Getinge AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thule Group and Getinge AB.
Diversification Opportunities for Thule Group and Getinge AB
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thule and Getinge is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Thule Group AB and Getinge AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getinge AB ser 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 Getinge AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getinge AB ser has no effect on the direction of Thule Group i.e., Thule Group and Getinge AB go up and down completely randomly.
Pair Corralation between Thule Group and Getinge AB
Assuming the 90 days trading horizon Thule Group is expected to generate 6.96 times less return on investment than Getinge AB. But when comparing it to its historical volatility, Thule Group AB is 1.53 times less risky than Getinge AB. It trades about 0.07 of its potential returns per unit of risk. Getinge AB ser is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 18,365 in Getinge AB ser on November 3, 2024 and sell it today you would earn a total of 3,445 from holding Getinge AB ser or generate 18.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thule Group AB vs. Getinge AB ser
Performance |
| Timeline |
| Thule Group AB |
| Getinge AB ser |
Thule Group and Getinge AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thule Group and Getinge AB
The main advantage of trading using opposite Thule Group and Getinge AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thule Group position performs unexpectedly, Getinge AB 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 Getinge AB will offset losses from the drop in Getinge AB'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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |