Correlation Between Storytel and Freemelt Holding
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By analyzing existing cross correlation between Storytel AB and Freemelt Holding AB, you can compare the effects of market volatilities on Storytel and Freemelt Holding 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 Storytel with a short position of Freemelt Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Freemelt Holding.
Diversification Opportunities for Storytel and Freemelt Holding
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Storytel and Freemelt is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Freemelt Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freemelt Holding and Storytel 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 Storytel AB are associated (or correlated) with Freemelt Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freemelt Holding has no effect on the direction of Storytel i.e., Storytel and Freemelt Holding go up and down completely randomly.
Pair Corralation between Storytel and Freemelt Holding
Assuming the 90 days trading horizon Storytel AB is expected to generate 0.29 times more return on investment than Freemelt Holding. However, Storytel AB is 3.42 times less risky than Freemelt Holding. It trades about 0.23 of its potential returns per unit of risk. Freemelt Holding AB is currently generating about -0.12 per unit of risk. If you would invest 4,852 in Storytel AB on September 26, 2024 and sell it today you would earn a total of 1,968 from holding Storytel AB or generate 40.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Storytel AB vs. Freemelt Holding AB
Performance |
Timeline |
Storytel AB |
Freemelt Holding |
Storytel and Freemelt Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Storytel and Freemelt Holding
The main advantage of trading using opposite Storytel and Freemelt Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Freemelt Holding 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 Freemelt Holding will offset losses from the drop in Freemelt Holding's long position.Storytel vs. Lifco AB | Storytel vs. Lagercrantz Group AB | Storytel vs. Instalco Intressenter AB | Storytel vs. AddLife AB |
Freemelt Holding vs. BIMobject AB | Freemelt Holding vs. Checkin Group AB | Freemelt Holding vs. Crunchfish AB | Freemelt Holding vs. Midsummer 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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