Correlation Between Anoto Group and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both Anoto Group and Episurf Medical 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 Episurf Medical 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 Episurf Medical AB, you can compare the effects of market volatilities on Anoto Group and Episurf Medical 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 Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anoto Group and Episurf Medical.
Diversification Opportunities for Anoto Group and Episurf Medical
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anoto and Episurf is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Anoto Group AB and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical 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 Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of Anoto Group i.e., Anoto Group and Episurf Medical go up and down completely randomly.
Pair Corralation between Anoto Group and Episurf Medical
Assuming the 90 days trading horizon Anoto Group AB is expected to under-perform the Episurf Medical. In addition to that, Anoto Group is 1.24 times more volatile than Episurf Medical AB. It trades about -0.16 of its total potential returns per unit of risk. Episurf Medical AB is currently generating about 0.08 per unit of volatility. If you would invest 14.00 in Episurf Medical AB on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Episurf Medical AB or generate 7.14% 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. Episurf Medical AB
Performance |
| Timeline |
| Anoto Group AB |
| Episurf Medical AB |
Anoto Group and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anoto Group and Episurf Medical
The main advantage of trading using opposite Anoto Group and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anoto Group position performs unexpectedly, Episurf Medical 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 Episurf Medical will offset losses from the drop in Episurf Medical's long position.| Anoto Group vs. Precise Biometrics AB | Anoto Group vs. Fingerprint Cards AB | Anoto Group vs. BioInvent International AB | Anoto Group vs. Bong AB |
| Episurf Medical vs. KABE Group AB | Episurf Medical vs. IAR Systems Group | Episurf Medical vs. Mekonomen AB | Episurf Medical vs. eEducation Albert 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |