Correlation Between Anoto Group and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Anoto Group and Xvivo Perfusion 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 Xvivo Perfusion 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 Xvivo Perfusion AB, you can compare the effects of market volatilities on Anoto Group and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anoto Group and Xvivo Perfusion.
Diversification Opportunities for Anoto Group and Xvivo Perfusion
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anoto and Xvivo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Anoto Group AB and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Anoto Group i.e., Anoto Group and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Anoto Group and Xvivo Perfusion
Assuming the 90 days trading horizon Anoto Group AB is expected to under-perform the Xvivo Perfusion. In addition to that, Anoto Group is 2.28 times more volatile than Xvivo Perfusion AB. It trades about -0.03 of its total potential returns per unit of risk. Xvivo Perfusion AB is currently generating about 0.07 per unit of volatility. If you would invest 22,850 in Xvivo Perfusion AB on November 19, 2024 and sell it today you would earn a total of 24,850 from holding Xvivo Perfusion AB or generate 108.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anoto Group AB vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Anoto Group AB |
| Xvivo Perfusion AB |
Anoto Group and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anoto Group and Xvivo Perfusion
The main advantage of trading using opposite Anoto Group and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anoto Group position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.| Anoto Group vs. Generic Sweden publ | Anoto Group vs. Diadrom Holding AB | Anoto Group vs. JLT Mobile Computers | Anoto Group vs. Avensia publ AB |
| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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