Correlation Between Acarix AS and Addnode Group
Can any of the company-specific risk be diversified away by investing in both Acarix AS and Addnode 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 Acarix AS and Addnode Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acarix AS and Addnode Group AB, you can compare the effects of market volatilities on Acarix AS and Addnode 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 Acarix AS with a short position of Addnode Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acarix AS and Addnode Group.
Diversification Opportunities for Acarix AS and Addnode Group
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acarix and Addnode is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Acarix AS and Addnode Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addnode Group AB and Acarix AS 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 Acarix AS are associated (or correlated) with Addnode Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addnode Group AB has no effect on the direction of Acarix AS i.e., Acarix AS and Addnode Group go up and down completely randomly.
Pair Corralation between Acarix AS and Addnode Group
Assuming the 90 days trading horizon Acarix AS is expected to generate 2.19 times more return on investment than Addnode Group. However, Acarix AS is 2.19 times more volatile than Addnode Group AB. It trades about 0.02 of its potential returns per unit of risk. Addnode Group AB is currently generating about 0.02 per unit of risk. If you would invest 29.00 in Acarix AS on September 14, 2024 and sell it today you would lose (3.00) from holding Acarix AS or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acarix AS vs. Addnode Group AB
Performance |
| Timeline |
| Acarix AS |
| Addnode Group AB |
Acarix AS and Addnode Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acarix AS and Addnode Group
The main advantage of trading using opposite Acarix AS and Addnode Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acarix AS position performs unexpectedly, Addnode 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 Addnode Group will offset losses from the drop in Addnode Group's long position.| Acarix AS vs. Saniona AB | Acarix AS vs. Cantargia AB | Acarix AS vs. Biovica International AB | Acarix AS vs. ExpreS2ion Biotech Holding |
| Addnode Group vs. Svenska Aerogel Holding | Addnode Group vs. Acarix AS | Addnode Group vs. Clean Motion AB | Addnode Group vs. Episurf Medical AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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