Correlation Between Addtech AB and NetJobs Group
Can any of the company-specific risk be diversified away by investing in both Addtech AB and NetJobs 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 Addtech AB and NetJobs Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addtech AB and NetJobs Group AB, you can compare the effects of market volatilities on Addtech AB and NetJobs 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 Addtech AB with a short position of NetJobs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and NetJobs Group.
Diversification Opportunities for Addtech AB and NetJobs Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Addtech and NetJobs is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group 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 NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Addtech AB i.e., Addtech AB and NetJobs Group go up and down completely randomly.
Pair Corralation between Addtech AB and NetJobs Group
Assuming the 90 days trading horizon Addtech AB is expected to generate 0.47 times more return on investment than NetJobs Group. However, Addtech AB is 2.13 times less risky than NetJobs Group. It trades about 0.01 of its potential returns per unit of risk. NetJobs Group AB is currently generating about -0.15 per unit of risk. If you would invest 30,120 in Addtech AB on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Addtech AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. NetJobs Group AB
Performance |
| Timeline |
| Addtech AB |
| NetJobs Group AB |
Addtech AB and NetJobs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and NetJobs Group
The main advantage of trading using opposite Addtech AB and NetJobs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, NetJobs 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 NetJobs Group will offset losses from the drop in NetJobs Group's long position.| Addtech AB vs. Indutrade AB | Addtech AB vs. Lifco AB | Addtech AB vs. Lagercrantz Group AB | Addtech AB vs. AddLife AB |
| NetJobs Group vs. Addtech AB | NetJobs Group vs. Teqnion AB | NetJobs Group vs. Vitec Software Group | NetJobs Group vs. Lagercrantz Group 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |