Correlation Between Truecaller and BHG Group
Can any of the company-specific risk be diversified away by investing in both Truecaller and BHG Group 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 Truecaller and BHG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truecaller AB and BHG Group AB, you can compare the effects of market volatilities on Truecaller and BHG 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 Truecaller with a short position of BHG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truecaller and BHG Group.
Diversification Opportunities for Truecaller and BHG Group
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Truecaller and BHG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Truecaller AB and BHG Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHG Group AB and Truecaller 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 Truecaller AB are associated (or correlated) with BHG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHG Group AB has no effect on the direction of Truecaller i.e., Truecaller and BHG Group go up and down completely randomly.
Pair Corralation between Truecaller and BHG Group
Assuming the 90 days trading horizon Truecaller AB is expected to generate 0.87 times more return on investment than BHG Group. However, Truecaller AB is 1.14 times less risky than BHG Group. It trades about 0.03 of its potential returns per unit of risk. BHG Group AB is currently generating about 0.01 per unit of risk. If you would invest 4,007 in Truecaller AB on August 25, 2024 and sell it today you would earn a total of 699.00 from holding Truecaller AB or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Truecaller AB vs. BHG Group AB
Performance |
| Timeline |
| Truecaller AB |
| BHG Group AB |
Truecaller and BHG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truecaller and BHG Group
The main advantage of trading using opposite Truecaller and BHG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truecaller position performs unexpectedly, BHG 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 BHG Group will offset losses from the drop in BHG Group's long position.| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group AB |
| BHG Group vs. Sinch AB | BHG Group vs. Byggmax Group AB | BHG Group vs. Stillfront Group AB | BHG Group vs. Boozt 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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