Correlation Between Storytel and Litium AB
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By analyzing existing cross correlation between Storytel AB and Litium AB, you can compare the effects of market volatilities on Storytel and Litium AB 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 Litium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storytel and Litium AB.
Diversification Opportunities for Storytel and Litium AB
Very good diversification
The 3 months correlation between Storytel and Litium is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Storytel AB and Litium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litium AB 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 Litium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litium AB has no effect on the direction of Storytel i.e., Storytel and Litium AB go up and down completely randomly.
Pair Corralation between Storytel and Litium AB
Assuming the 90 days trading horizon Storytel AB is expected to generate 1.26 times more return on investment than Litium AB. However, Storytel is 1.26 times more volatile than Litium AB. It trades about 0.08 of its potential returns per unit of risk. Litium AB is currently generating about -0.13 per unit of risk. If you would invest 5,525 in Storytel AB on September 24, 2024 and sell it today you would earn a total of 1,335 from holding Storytel AB or generate 24.16% 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. Litium AB
Performance |
Timeline |
Storytel AB |
Litium AB |
Storytel and Litium AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Storytel and Litium AB
The main advantage of trading using opposite Storytel and Litium AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storytel position performs unexpectedly, Litium AB 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 Litium AB will offset losses from the drop in Litium AB's long position.Storytel vs. Lifco AB | Storytel vs. Lagercrantz Group AB | Storytel vs. Instalco Intressenter AB | Storytel vs. AddLife AB |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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