Correlation Between Resurs Holding and Transtema Group

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

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

Diversification Opportunities for Resurs Holding and Transtema Group

0.0

Correlation Coefficient

Resurs Holding  Transtema Group

Pay attention - limited upside

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

Pair Corralation between Resurs Holding and Transtema Group

If you would invest  2,350  in Resurs Holding AB on December 25, 2024 and sell it today you would earn a total of  0.00  from holding Resurs Holding AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Resurs Holding AB  vs.  Transtema Group AB

Resurs Holding AB

Risk-Adjusted Performance

Very Weak

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

Transtema Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Transtema Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Transtema Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Resurs Holding and Transtema Group

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

The idea behind Resurs Holding AB and Transtema Group 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.

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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.