Correlation Between Addtech AB and Inission
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By analyzing existing cross correlation between Addtech AB and Inission AB, you can compare the effects of market volatilities on Addtech AB and Inission 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 Addtech AB with a short position of Inission. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and Inission.
Diversification Opportunities for Addtech AB and Inission
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Addtech and Inission is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and Inission AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inission AB and Addtech 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 Addtech AB are associated (or correlated) with Inission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inission AB has no effect on the direction of Addtech AB i.e., Addtech AB and Inission go up and down completely randomly.
Pair Corralation between Addtech AB and Inission
Assuming the 90 days trading horizon Addtech AB is expected to generate 0.98 times more return on investment than Inission. However, Addtech AB is 1.02 times less risky than Inission. It trades about -0.05 of its potential returns per unit of risk. Inission AB is currently generating about -0.18 per unit of risk. If you would invest 32,500 in Addtech AB on August 28, 2024 and sell it today you would lose (2,380) from holding Addtech AB or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Addtech AB vs. Inission AB
Performance |
| Timeline |
| Addtech AB |
| Inission AB |
Addtech AB and Inission Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and Inission
The main advantage of trading using opposite Addtech AB and Inission positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, Inission 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 Inission will offset losses from the drop in Inission's long position.| Addtech AB vs. Indutrade AB | Addtech AB vs. Lifco AB | Addtech AB vs. Lagercrantz Group AB | Addtech AB vs. AddLife AB |
| Inission vs. Firefly AB | Inission vs. CTT Systems AB | Inission vs. Cavotec SA | Inission vs. Bygg Partner i |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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