Correlation Between Truecaller and Stille AB
Can any of the company-specific risk be diversified away by investing in both Truecaller and Stille AB 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 Stille AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truecaller AB and Stille AB, you can compare the effects of market volatilities on Truecaller and Stille AB 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 Stille AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truecaller and Stille AB.
Diversification Opportunities for Truecaller and Stille AB
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Truecaller and Stille is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Truecaller AB and Stille AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stille 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 Stille AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stille AB has no effect on the direction of Truecaller i.e., Truecaller and Stille AB go up and down completely randomly.
Pair Corralation between Truecaller and Stille AB
Assuming the 90 days trading horizon Truecaller is expected to generate 1.42 times less return on investment than Stille AB. In addition to that, Truecaller is 1.54 times more volatile than Stille AB. It trades about 0.07 of its total potential returns per unit of risk. Stille AB is currently generating about 0.14 per unit of volatility. If you would invest 20,800 in Stille AB on September 1, 2024 and sell it today you would earn a total of 1,200 from holding Stille AB or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Truecaller AB vs. Stille AB
Performance |
| Timeline |
| Truecaller AB |
| Stille AB |
Truecaller and Stille AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truecaller and Stille AB
The main advantage of trading using opposite Truecaller and Stille AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truecaller position performs unexpectedly, Stille AB 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 Stille AB will offset losses from the drop in Stille AB's long position.| Truecaller vs. Sinch AB | Truecaller vs. Hexatronic Group AB | Truecaller vs. Samhllsbyggnadsbolaget i Norden | Truecaller vs. Storskogen Group AB |
| Stille AB vs. C Rad AB | Stille AB vs. CellaVision AB | Stille AB vs. Boule Diagnostics AB | Stille AB vs. Genovis 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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