Correlation Between AQ Group and Tamtron Group

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

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

Diversification Opportunities for AQ Group and Tamtron Group

0.67

Correlation Coefficient

AQ Group  Tamtron Group

Poor diversification

The 3 months correlation between AQ Group and Tamtron is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AQ Group AB and Tamtron Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamtron Group Oyj and AQ 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 AQ Group AB are associated (or correlated) with Tamtron Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamtron Group Oyj has no effect on the direction of AQ Group i.e., AQ Group and Tamtron Group go up and down completely randomly.

Pair Corralation between AQ Group and Tamtron Group

Assuming the 90 days horizon AQ Group AB is expected to generate 1.02 times more return on investment than Tamtron Group. However, AQ Group is 1.02 times more volatile than Tamtron Group Oyj. It trades about 0.17 of its potential returns per unit of risk. Tamtron Group Oyj is currently generating about 0.07 per unit of risk. If you would invest  16,000  in AQ Group AB on May 7, 2025 and sell it today you would earn a total of  3,480  from holding AQ Group AB or generate 21.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

AQ Group AB  vs.  Tamtron Group Oyj

AQ Group AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AQ Group AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, AQ Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Tamtron Group Oyj

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Tamtron Group Oyj are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Tamtron Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AQ Group and Tamtron Group

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

The idea behind AQ Group AB and Tamtron Group Oyj 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.