Correlation Between Addtech AB and Sdiptech
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By analyzing existing cross correlation between Addtech AB and Sdiptech AB, you can compare the effects of market volatilities on Addtech AB and Sdiptech 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 Sdiptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and Sdiptech.
Diversification Opportunities for Addtech AB and Sdiptech
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addtech and Sdiptech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and Sdiptech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdiptech 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 Sdiptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdiptech AB has no effect on the direction of Addtech AB i.e., Addtech AB and Sdiptech go up and down completely randomly.
Pair Corralation between Addtech AB and Sdiptech
Assuming the 90 days trading horizon Addtech AB is expected to generate 2.93 times more return on investment than Sdiptech. However, Addtech AB is 2.93 times more volatile than Sdiptech AB. It trades about 0.05 of its potential returns per unit of risk. Sdiptech AB is currently generating about 0.06 per unit of risk. If you would invest 22,746 in Addtech AB on September 1, 2024 and sell it today you would earn a total of 7,254 from holding Addtech AB or generate 31.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. Sdiptech AB
Performance |
| Timeline |
| Addtech AB |
| Sdiptech AB |
Addtech AB and Sdiptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and Sdiptech
The main advantage of trading using opposite Addtech AB and Sdiptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, Sdiptech 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 Sdiptech will offset losses from the drop in Sdiptech's long position.| Addtech AB vs. Indutrade AB | Addtech AB vs. Lifco AB | Addtech AB vs. Lagercrantz Group AB | Addtech AB vs. AddLife AB |
| Sdiptech vs. Bergman Beving AB | Sdiptech vs. FM Mattsson Mora | Sdiptech vs. Systemair AB | Sdiptech vs. Garo 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 CEOs Directory module to screen CEOs from public companies around the world.
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