Correlation Between TradeDoubler and Klimator

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

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

Diversification Opportunities for TradeDoubler and Klimator

0.19

Correlation Coefficient

TradeDoubler  Klimator

Average diversification

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

Pair Corralation between TradeDoubler and Klimator

Assuming the 90 days trading horizon TradeDoubler AB is expected to generate 0.93 times more return on investment than Klimator. However, TradeDoubler AB is 1.08 times less risky than Klimator. It trades about 0.16 of its potential returns per unit of risk. Klimator AB is currently generating about 0.09 per unit of risk. If you would invest  594.00  in TradeDoubler AB on May 4, 2025 and sell it today you would earn a total of  176.00  from holding TradeDoubler AB or generate 29.63% return on investment over 90 days.

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

TradeDoubler AB  vs.  Klimator AB

TradeDoubler AB

Risk-Adjusted Performance

Good

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

Klimator AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Klimator AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Klimator sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TradeDoubler and Klimator

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

The idea behind TradeDoubler AB and Klimator 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.