Correlation Between Addnode Group and Hedera Group
Can any of the company-specific risk be diversified away by investing in both Addnode Group and Hedera 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 Addnode Group and Hedera Group 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 Hedera Group publ, you can compare the effects of market volatilities on Addnode Group and Hedera 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 Addnode Group with a short position of Hedera Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addnode Group and Hedera Group.
Diversification Opportunities for Addnode Group and Hedera Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Addnode and Hedera is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Addnode Group AB and Hedera Group publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Group publ 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 Hedera Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Group publ has no effect on the direction of Addnode Group i.e., Addnode Group and Hedera Group go up and down completely randomly.
Pair Corralation between Addnode Group and Hedera Group
If you would invest 0.00 in Hedera Group publ on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Hedera Group publ or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Addnode Group AB vs. Hedera Group publ
Performance |
| Timeline |
| Addnode Group AB |
| Hedera Group publ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Addnode Group and Hedera Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addnode Group and Hedera Group
The main advantage of trading using opposite Addnode Group and Hedera Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addnode Group position performs unexpectedly, Hedera 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 Hedera Group will offset losses from the drop in Hedera Group's long position.| Addnode Group vs. Svenska Aerogel Holding | Addnode Group vs. Acarix AS | Addnode Group vs. Clean Motion AB | Addnode Group vs. Episurf Medical AB |
| Hedera Group vs. Clean Motion AB | Hedera Group vs. Heliospectra publ AB | Hedera Group vs. Gaming Corps AB | Hedera Group vs. Doxa 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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