Correlation Between Stille AB and Unlimited Travel

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

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

Diversification Opportunities for Stille AB and Unlimited Travel

0.39

Correlation Coefficient

Stille AB  Unlimited Travel

Weak diversification

The 3 months correlation between Stille and Unlimited is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Stille AB and Unlimited Travel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlimited Travel and Stille 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 Stille AB are associated (or correlated) with Unlimited Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlimited Travel has no effect on the direction of Stille AB i.e., Stille AB and Unlimited Travel go up and down completely randomly.

Pair Corralation between Stille AB and Unlimited Travel

Assuming the 90 days trading horizon Stille AB is expected to generate 1.87 times more return on investment than Unlimited Travel. However, Stille AB is 1.87 times more volatile than Unlimited Travel Group. It trades about 0.09 of its potential returns per unit of risk. Unlimited Travel Group is currently generating about 0.16 per unit of risk. If you would invest  20,100  in Stille AB on April 24, 2025 and sell it today you would earn a total of  2,700  from holding Stille AB or generate 13.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Stille AB  vs.  Unlimited Travel Group

Stille AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stille AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Stille AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Unlimited Travel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unlimited Travel Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Unlimited Travel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stille AB and Unlimited Travel

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

The idea behind Stille AB and Unlimited Travel Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.