Correlation Between Anoto Group and Image Systems
Can any of the company-specific risk be diversified away by investing in both Anoto Group and Image Systems 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 Image Systems 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 Image Systems AB, you can compare the effects of market volatilities on Anoto Group and Image Systems 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 Image Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anoto Group and Image Systems.
Diversification Opportunities for Anoto Group and Image Systems
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anoto and Image is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Anoto Group AB and Image Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Systems 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 Image Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Systems AB has no effect on the direction of Anoto Group i.e., Anoto Group and Image Systems go up and down completely randomly.
Pair Corralation between Anoto Group and Image Systems
Assuming the 90 days trading horizon Anoto Group is expected to generate 4.47 times less return on investment than Image Systems. In addition to that, Anoto Group is 1.18 times more volatile than Image Systems AB. It trades about 0.03 of its total potential returns per unit of risk. Image Systems AB is currently generating about 0.17 per unit of volatility. If you would invest 143.00 in Image Systems AB on August 28, 2024 and sell it today you would earn a total of 61.00 from holding Image Systems AB or generate 42.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Anoto Group AB vs. Image Systems AB
Performance |
| Timeline |
| Anoto Group AB |
| Image Systems AB |
Anoto Group and Image Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anoto Group and Image Systems
The main advantage of trading using opposite Anoto Group and Image Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anoto Group position performs unexpectedly, Image Systems 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 Image Systems will offset losses from the drop in Image Systems' 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 |
| Image Systems vs. Precise Biometrics AB | Image Systems vs. Anoto Group AB | Image Systems vs. Bong AB | Image Systems vs. Episurf Medical 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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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