Correlation Between Truecaller and Rottneros
Can any of the company-specific risk be diversified away by investing in both Truecaller and Rottneros 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 Rottneros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truecaller AB and Rottneros AB, you can compare the effects of market volatilities on Truecaller and Rottneros 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 Rottneros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truecaller and Rottneros.
Diversification Opportunities for Truecaller and Rottneros
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Truecaller and Rottneros is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Truecaller AB and Rottneros AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rottneros 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 Rottneros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rottneros AB has no effect on the direction of Truecaller i.e., Truecaller and Rottneros go up and down completely randomly.
Pair Corralation between Truecaller and Rottneros
Assuming the 90 days trading horizon Truecaller AB is expected to generate 1.81 times more return on investment than Rottneros. However, Truecaller is 1.81 times more volatile than Rottneros AB. It trades about 0.03 of its potential returns per unit of risk. Rottneros AB is currently generating about -0.02 per unit of risk. If you would invest 3,648 in Truecaller AB on August 30, 2024 and sell it today you would earn a total of 1,150 from holding Truecaller AB or generate 31.52% 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. Rottneros AB
Performance |
| Timeline |
| Truecaller AB |
| Rottneros AB |
Truecaller and Rottneros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truecaller and Rottneros
The main advantage of trading using opposite Truecaller and Rottneros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truecaller position performs unexpectedly, Rottneros 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 Rottneros will offset losses from the drop in Rottneros' long position.| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group AB |
| Rottneros vs. Bjorn Borg AB | Rottneros vs. Diadrom Holding AB | Rottneros vs. Anoto Group AB | Rottneros vs. Cloetta 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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