Correlation Between Ayima Group and Tellusgruppen

Can any of the company-specific risk be diversified away by investing in both Ayima Group and Tellusgruppen 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 Ayima Group and Tellusgruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ayima Group AB and Tellusgruppen AB, you can compare the effects of market volatilities on Ayima Group and Tellusgruppen 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 Ayima Group with a short position of Tellusgruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayima Group and Tellusgruppen.

Diversification Opportunities for Ayima Group and Tellusgruppen

0.0

Correlation Coefficient

Ayima Group  Tellusgruppen

Pay attention - limited upside

The 3 months correlation between Ayima and Tellusgruppen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ayima Group AB and Tellusgruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellusgruppen AB and Ayima Group 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 Ayima Group AB are associated (or correlated) with Tellusgruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellusgruppen AB has no effect on the direction of Ayima Group i.e., Ayima Group and Tellusgruppen go up and down completely randomly.

Pair Corralation between Ayima Group and Tellusgruppen

If you would invest  332.00  in Ayima Group AB on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Ayima Group AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ayima Group AB  vs.  Tellusgruppen AB

Ayima Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ayima Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Ayima Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tellusgruppen AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tellusgruppen AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Tellusgruppen is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ayima Group and Tellusgruppen

The main advantage of trading using opposite Ayima Group and Tellusgruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ayima Group position performs unexpectedly, Tellusgruppen 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 Tellusgruppen will offset losses from the drop in Tellusgruppen's long position.

The idea behind Ayima Group AB and Tellusgruppen AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.