Correlation Between Anoto Group and CellaVision
Can any of the company-specific risk be diversified away by investing in both Anoto Group and CellaVision 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 CellaVision 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 CellaVision AB, you can compare the effects of market volatilities on Anoto Group and CellaVision 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 CellaVision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anoto Group and CellaVision.
Diversification Opportunities for Anoto Group and CellaVision
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anoto and CellaVision is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anoto Group AB and CellaVision AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CellaVision AB 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 CellaVision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CellaVision AB has no effect on the direction of Anoto Group i.e., Anoto Group and CellaVision go up and down completely randomly.
Pair Corralation between Anoto Group and CellaVision
Assuming the 90 days trading horizon Anoto Group AB is expected to under-perform the CellaVision. In addition to that, Anoto Group is 1.77 times more volatile than CellaVision AB. It trades about 0.0 of its total potential returns per unit of risk. CellaVision AB is currently generating about 0.02 per unit of volatility. If you would invest 21,860 in CellaVision AB on August 26, 2024 and sell it today you would lose (160.00) from holding CellaVision AB or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anoto Group AB vs. CellaVision AB
Performance |
| Timeline |
| Anoto Group AB |
| CellaVision AB |
Anoto Group and CellaVision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anoto Group and CellaVision
The main advantage of trading using opposite Anoto Group and CellaVision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anoto Group position performs unexpectedly, CellaVision 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 CellaVision will offset losses from the drop in CellaVision'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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