Correlation Between Boozt AB and Thule Group

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

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

Diversification Opportunities for Boozt AB and Thule Group

0.19

Correlation Coefficient

Boozt AB  Thule Group

Average diversification

The 3 months correlation between Boozt and Thule is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Boozt AB and Thule Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thule Group AB and Boozt AB 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 Boozt AB are associated (or correlated) with Thule Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thule Group AB has no effect on the direction of Boozt AB i.e., Boozt AB and Thule Group go up and down completely randomly.

Pair Corralation between Boozt AB and Thule Group

Assuming the 90 days trading horizon Boozt AB is expected to generate 1.57 times less return on investment than Thule Group. In addition to that, Boozt AB is 1.01 times more volatile than Thule Group AB. It trades about 0.08 of its total potential returns per unit of risk. Thule Group AB is currently generating about 0.13 per unit of volatility. If you would invest  29,061  in Thule Group AB on September 5, 2024 and sell it today you would earn a total of  6,899  from holding Thule Group AB or generate 23.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Boozt AB  vs.  Thule Group AB

Boozt AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boozt AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Boozt AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Thule Group AB

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thule 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, Thule Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boozt AB and Thule Group

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

The idea behind Boozt AB and Thule 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.