Correlation Between Truecaller and Kjell Group
Can any of the company-specific risk be diversified away by investing in both Truecaller and Kjell 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 Kjell 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 Kjell Group AB, you can compare the effects of market volatilities on Truecaller and Kjell 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 Kjell Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truecaller and Kjell Group.
Diversification Opportunities for Truecaller and Kjell Group
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Truecaller and Kjell is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Truecaller AB and Kjell Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kjell 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 Kjell Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kjell Group AB has no effect on the direction of Truecaller i.e., Truecaller and Kjell Group go up and down completely randomly.
Pair Corralation between Truecaller and Kjell Group
Assuming the 90 days trading horizon Truecaller AB is expected to generate 1.11 times more return on investment than Kjell Group. However, Truecaller is 1.11 times more volatile than Kjell Group AB. It trades about 0.03 of its potential returns per unit of risk. Kjell Group AB is currently generating about -0.65 per unit of risk. If you would invest 4,742 in Truecaller AB on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Truecaller AB or generate 0.67% 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. Kjell Group AB
Performance |
| Timeline |
| Truecaller AB |
| Kjell Group AB |
Truecaller and Kjell Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truecaller and Kjell Group
The main advantage of trading using opposite Truecaller and Kjell Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truecaller position performs unexpectedly, Kjell 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 Kjell Group will offset losses from the drop in Kjell Group's long position.| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group AB |
| Kjell Group vs. Precise Biometrics AB | Kjell Group vs. Anoto Group AB | Kjell Group vs. Bong AB | Kjell Group vs. Episurf Medical 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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