Correlation Between Anoto Group and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Anoto Group and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Anoto Group and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anoto Group and Dow Jones.
Diversification Opportunities for Anoto Group and Dow Jones
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anoto and Dow is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Anoto Group AB and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Anoto Group i.e., Anoto Group and Dow Jones go up and down completely randomly.
Pair Corralation between Anoto Group and Dow Jones
Assuming the 90 days trading horizon Anoto Group AB is expected to under-perform the Dow Jones. In addition to that, Anoto Group is 9.4 times more volatile than Dow Jones Industrial. It trades about -0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 3,528,252 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 901,399 from holding Dow Jones Industrial or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Anoto Group AB vs. Dow Jones Industrial
Performance |
| Timeline |
Anoto Group and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Anoto Group AB
Pair trading matchups for Anoto Group
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Anoto Group and Dow Jones
The main advantage of trading using opposite Anoto Group and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anoto Group position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Anoto Group vs. Novotek AB | Anoto Group vs. Addnode Group AB | Anoto Group vs. Softronic AB | Anoto Group vs. CTT Systems AB |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 CEOs Directory module to screen CEOs from public companies around the world.
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