Correlation Between Truecaller and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Truecaller and Fluoguide 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 Fluoguide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truecaller AB and Fluoguide AS, you can compare the effects of market volatilities on Truecaller and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truecaller and Fluoguide.
Diversification Opportunities for Truecaller and Fluoguide
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Truecaller and Fluoguide is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Truecaller AB and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Truecaller i.e., Truecaller and Fluoguide go up and down completely randomly.
Pair Corralation between Truecaller and Fluoguide
Assuming the 90 days trading horizon Truecaller AB is expected to generate 1.2 times more return on investment than Fluoguide. However, Truecaller is 1.2 times more volatile than Fluoguide AS. It trades about 0.05 of its potential returns per unit of risk. Fluoguide AS is currently generating about -0.05 per unit of risk. If you would invest 3,115 in Truecaller AB on September 2, 2024 and sell it today you would earn a total of 1,801 from holding Truecaller AB or generate 57.82% 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. Fluoguide AS
Performance |
| Timeline |
| Truecaller AB |
| Fluoguide AS |
Truecaller and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truecaller and Fluoguide
The main advantage of trading using opposite Truecaller and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truecaller position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group AB |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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