Correlation Between Addnode Group and Aino Health
Can any of the company-specific risk be diversified away by investing in both Addnode Group and Aino Health 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 Addnode Group and Aino Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addnode Group AB and Aino Health AB, you can compare the effects of market volatilities on Addnode Group and Aino Health 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 Addnode Group with a short position of Aino Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addnode Group and Aino Health.
Diversification Opportunities for Addnode Group and Aino Health
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Addnode and Aino is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Addnode Group AB and Aino Health AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aino Health AB and Addnode 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 Addnode Group AB are associated (or correlated) with Aino Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aino Health AB has no effect on the direction of Addnode Group i.e., Addnode Group and Aino Health go up and down completely randomly.
Pair Corralation between Addnode Group and Aino Health
Assuming the 90 days trading horizon Addnode Group is expected to generate 8.14 times less return on investment than Aino Health. But when comparing it to its historical volatility, Addnode Group AB is 4.74 times less risky than Aino Health. It trades about 0.02 of its potential returns per unit of risk. Aino Health AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 122.00 in Aino Health AB on November 5, 2024 and sell it today you would lose (99.00) from holding Aino Health AB or give up 81.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Addnode Group AB vs. Aino Health AB
Performance |
| Timeline |
| Addnode Group AB |
| Aino Health AB |
Addnode Group and Aino Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addnode Group and Aino Health
The main advantage of trading using opposite Addnode Group and Aino Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addnode Group position performs unexpectedly, Aino Health 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 Aino Health will offset losses from the drop in Aino Health's long position.| Addnode Group vs. Lagercrantz Group AB | Addnode Group vs. Addtech AB | Addnode Group vs. Vitec Software Group | Addnode Group vs. AddLife AB |
| Aino Health vs. Svenska Aerogel Holding | Aino Health vs. Acarix AS | Aino Health vs. Clean Motion AB | Aino Health vs. AroCell 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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