Correlation Between Truecaller and Nimbus Group
Can any of the company-specific risk be diversified away by investing in both Truecaller and Nimbus 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 Nimbus 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 Nimbus Group AB, you can compare the effects of market volatilities on Truecaller and Nimbus 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 Nimbus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truecaller and Nimbus Group.
Diversification Opportunities for Truecaller and Nimbus Group
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Truecaller and Nimbus is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Truecaller AB and Nimbus Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nimbus 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 Nimbus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nimbus Group AB has no effect on the direction of Truecaller i.e., Truecaller and Nimbus Group go up and down completely randomly.
Pair Corralation between Truecaller and Nimbus Group
Assuming the 90 days trading horizon Truecaller AB is expected to generate 0.98 times more return on investment than Nimbus Group. However, Truecaller AB is 1.02 times less risky than Nimbus Group. It trades about 0.09 of its potential returns per unit of risk. Nimbus Group AB is currently generating about -0.05 per unit of risk. If you would invest 3,309 in Truecaller AB on September 12, 2024 and sell it today you would earn a total of 2,041 from holding Truecaller AB or generate 61.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Truecaller AB vs. Nimbus Group AB
Performance |
| Timeline |
| Truecaller AB |
| Nimbus Group AB |
Truecaller and Nimbus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truecaller and Nimbus Group
The main advantage of trading using opposite Truecaller and Nimbus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truecaller position performs unexpectedly, Nimbus 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 Nimbus Group will offset losses from the drop in Nimbus Group's long position.| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group AB |
| Nimbus Group vs. Dometic Group AB | Nimbus Group vs. Garo AB | Nimbus Group vs. Byggmax Group AB | Nimbus Group vs. Nordnet 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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