Correlation Between Storytel and Implantica

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

By analyzing existing cross correlation between Storytel AB and Implantica AG, you can compare the effects of market volatilities on Storytel and Implantica 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 Implantica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Implantica.

Diversification Opportunities for Storytel and Implantica

-0.53

Correlation Coefficient

Storytel  Implantica

Excellent diversification

The 3 months correlation between Storytel and Implantica is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Implantica AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implantica AG 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 Implantica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implantica AG has no effect on the direction of Storytel i.e., Storytel and Implantica go up and down completely randomly.

Pair Corralation between Storytel and Implantica

Assuming the 90 days trading horizon Storytel AB is expected to generate 0.85 times more return on investment than Implantica. However, Storytel AB is 1.17 times less risky than Implantica. It trades about 0.23 of its potential returns per unit of risk. Implantica AG is currently generating about -0.11 per unit of risk. If you would invest  6,125  in Storytel AB on September 26, 2024 and sell it today you would earn a total of  695.00  from holding Storytel AB or generate 11.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Storytel AB  vs.  Implantica AG

Storytel AB

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Storytel AB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Storytel sustained solid returns over the last few months and may actually be approaching a breakup point.

Implantica AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Implantica AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Storytel and Implantica

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

The idea behind Storytel AB and Implantica AG 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.