Correlation Between Anoto Group and BioInvent International
Can any of the company-specific risk be diversified away by investing in both Anoto Group and BioInvent International 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 Anoto Group and BioInvent International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anoto Group AB and BioInvent International AB, you can compare the effects of market volatilities on Anoto Group and BioInvent International 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 Anoto Group with a short position of BioInvent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anoto Group and BioInvent International.
Diversification Opportunities for Anoto Group and BioInvent International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anoto and BioInvent is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anoto Group AB and BioInvent International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioInvent International and Anoto 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 Anoto Group AB are associated (or correlated) with BioInvent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioInvent International has no effect on the direction of Anoto Group i.e., Anoto Group and BioInvent International go up and down completely randomly.
Pair Corralation between Anoto Group and BioInvent International
Assuming the 90 days trading horizon Anoto Group AB is expected to under-perform the BioInvent International. In addition to that, Anoto Group is 1.82 times more volatile than BioInvent International AB. It trades about -0.04 of its total potential returns per unit of risk. BioInvent International AB is currently generating about 0.05 per unit of volatility. If you would invest 4,335 in BioInvent International AB on August 25, 2024 and sell it today you would earn a total of 120.00 from holding BioInvent International AB or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Anoto Group AB vs. BioInvent International AB
Performance |
| Timeline |
| Anoto Group AB |
| BioInvent International |
Anoto Group and BioInvent International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anoto Group and BioInvent International
The main advantage of trading using opposite Anoto Group and BioInvent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anoto Group position performs unexpectedly, BioInvent International 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 BioInvent International will offset losses from the drop in BioInvent International's long position.| Anoto Group vs. Novotek AB | Anoto Group vs. Addnode Group AB | Anoto Group vs. Softronic AB | Anoto Group vs. CTT Systems AB |
| BioInvent International vs. Hansa Biopharma AB | BioInvent International vs. Saniona AB | BioInvent International vs. Active Biotech AB | BioInvent International vs. Oncopeptides 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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