Correlation Between Stillfront Group and TradeDoubler

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

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

Diversification Opportunities for Stillfront Group and TradeDoubler

0.22

Correlation Coefficient

Stillfront Group  TradeDoubler

Modest diversification

The 3 months correlation between Stillfront and TradeDoubler is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and TradeDoubler AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeDoubler AB and Stillfront 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 Stillfront Group AB are associated (or correlated) with TradeDoubler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeDoubler AB has no effect on the direction of Stillfront Group i.e., Stillfront Group and TradeDoubler go up and down completely randomly.

Pair Corralation between Stillfront Group and TradeDoubler

Assuming the 90 days horizon Stillfront Group AB is expected to generate 1.43 times more return on investment than TradeDoubler. However, Stillfront Group is 1.43 times more volatile than TradeDoubler AB. It trades about -0.02 of its potential returns per unit of risk. TradeDoubler AB is currently generating about -0.04 per unit of risk. If you would invest  994.00  in Stillfront Group AB on September 29, 2024 and sell it today you would lose (144.00) from holding Stillfront Group AB or give up 14.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.22%
Values	Daily Returns

Stillfront Group AB  vs.  TradeDoubler AB

Stillfront Group

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stillfront Group AB are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stillfront Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

TradeDoubler AB

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TradeDoubler AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, TradeDoubler is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Stillfront Group and TradeDoubler

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

The idea behind Stillfront Group AB and TradeDoubler 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.