Correlation Between ADDvise Group and Implantica

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Can any of the company-specific risk be diversified away by investing in both ADDvise Group and Implantica 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 ADDvise Group and Implantica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADDvise Group B and Implantica AG, you can compare the effects of market volatilities on ADDvise Group and Implantica 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 ADDvise Group with a short position of Implantica. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADDvise Group and Implantica.

Diversification Opportunities for ADDvise Group and Implantica

-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between ADDvise and Implantica is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ADDvise Group B and Implantica AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implantica AG and ADDvise Group 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 ADDvise Group B are associated (or correlated) with Implantica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implantica AG has no effect on the direction of ADDvise Group i.e., ADDvise Group and Implantica go up and down completely randomly.

Pair Corralation between ADDvise Group and Implantica

Assuming the 90 days trading horizon ADDvise Group B is expected to under-perform the Implantica. In addition to that, ADDvise Group is 2.65 times more volatile than Implantica AG. It trades about -0.13 of its total potential returns per unit of risk. Implantica AG is currently generating about -0.01 per unit of volatility. If you would invest  3,800  in Implantica AG on November 27, 2024 and sell it today you would lose (135.00) from holding Implantica AG or give up 3.55% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

ADDvise Group B  vs.  Implantica AG

 Performance 
       Timeline  
ADDvise Group B 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ADDvise Group B has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Implantica AG 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Implantica AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Implantica is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ADDvise Group and Implantica Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ADDvise Group and Implantica

The main advantage of trading using opposite ADDvise Group and Implantica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADDvise Group position performs unexpectedly, Implantica 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 Implantica will offset losses from the drop in Implantica's long position.
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The idea behind ADDvise Group B and Implantica AG 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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