Correlation Between Transtema Group and TalkPool

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

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

Diversification Opportunities for Transtema Group and TalkPool

0.66

Correlation Coefficient

Transtema Group  TalkPool

Poor diversification

The 3 months correlation between Transtema and TalkPool is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Transtema Group AB and TalkPool AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TalkPool AG and Transtema Group 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 Transtema Group 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 Transtema Group i.e., Transtema Group and TalkPool go up and down completely randomly.

Pair Corralation between Transtema Group and TalkPool

Assuming the 90 days trading horizon Transtema Group is expected to generate 5.16 times less return on investment than TalkPool. But when comparing it to its historical volatility, Transtema Group AB is 2.68 times less risky than TalkPool. It trades about 0.1 of its potential returns per unit of risk. TalkPool AG is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  780.00  in TalkPool AG on April 24, 2025 and sell it today you would earn a total of  610.00  from holding TalkPool AG or generate 78.21% return on investment over 90 days.

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

Transtema Group AB  vs.  TalkPool AG

Transtema Group AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Transtema Group AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Transtema Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

TalkPool AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TalkPool AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TalkPool unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Transtema Group and TalkPool

The main advantage of trading using opposite Transtema Group and TalkPool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transtema Group 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 Transtema Group 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.