Correlation Between TradeDoubler and Online Brands
Can any of the company-specific risk be diversified away by investing in both TradeDoubler and Online Brands 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 TradeDoubler and Online Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TradeDoubler AB and Online Brands Nordic, you can compare the effects of market volatilities on TradeDoubler and Online Brands 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 TradeDoubler with a short position of Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of TradeDoubler and Online Brands.
Diversification Opportunities for TradeDoubler and Online Brands
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TradeDoubler and Online is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding TradeDoubler AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic and TradeDoubler 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 TradeDoubler AB are associated (or correlated) with Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of TradeDoubler i.e., TradeDoubler and Online Brands go up and down completely randomly.
Pair Corralation between TradeDoubler and Online Brands
Assuming the 90 days trading horizon TradeDoubler AB is expected to generate 1.49 times more return on investment than Online Brands. However, TradeDoubler is 1.49 times more volatile than Online Brands Nordic. It trades about 0.23 of its potential returns per unit of risk. Online Brands Nordic is currently generating about -0.04 per unit of risk. If you would invest 362.00 in TradeDoubler AB on November 30, 2024 and sell it today you would earn a total of 188.00 from holding TradeDoubler AB or generate 51.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TradeDoubler AB vs. Online Brands Nordic
Performance |
| Timeline |
| TradeDoubler AB |
| Online Brands Nordic |
TradeDoubler and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TradeDoubler and Online Brands
The main advantage of trading using opposite TradeDoubler and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TradeDoubler position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.| TradeDoubler vs. Precise Biometrics AB | TradeDoubler vs. BE Group AB | TradeDoubler vs. Eniro AB | TradeDoubler vs. Softronic AB |
| Online Brands vs. NetJobs Group AB | Online Brands vs. Mantex AB | Online Brands vs. Doxa AB | Online Brands vs. Clean Motion 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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