Correlation Between EQT AB and TalkPool

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Can any of the company-specific risk be diversified away by investing in both EQT AB and TalkPool 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 EQT AB and TalkPool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EQT AB and TalkPool AG, you can compare the effects of market volatilities on EQT AB and TalkPool 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 EQT AB with a short position of TalkPool. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQT AB and TalkPool.

Diversification Opportunities for EQT AB and TalkPool

-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between EQT and TalkPool is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding EQT AB and TalkPool AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TalkPool AG and EQT 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 EQT AB are associated (or correlated) with TalkPool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TalkPool AG has no effect on the direction of EQT AB i.e., EQT AB and TalkPool go up and down completely randomly.

Pair Corralation between EQT AB and TalkPool

Assuming the 90 days trading horizon EQT AB is expected to generate 1.66 times less return on investment than TalkPool. But when comparing it to its historical volatility, EQT AB is 1.79 times less risky than TalkPool. It trades about 0.02 of its potential returns per unit of risk. TalkPool AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,380  in TalkPool AG on September 10, 2025 and sell it today you would earn a total of  5.00  from holding TalkPool AG or generate 0.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

EQT AB  vs.  TalkPool AG

 Performance 
       Timeline  
EQT AB 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in EQT AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, EQT AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
TalkPool AG 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TalkPool AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, TalkPool is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

EQT AB and TalkPool Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EQT AB and TalkPool

The main advantage of trading using opposite EQT AB and TalkPool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQT AB position performs unexpectedly, TalkPool 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 TalkPool will offset losses from the drop in TalkPool's long position.
The idea behind EQT AB and TalkPool 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.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

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