Correlation Between Corline Biomedical and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and Anoto Group 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 Corline Biomedical and Anoto Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and Anoto Group AB, you can compare the effects of market volatilities on Corline Biomedical and Anoto Group 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 Corline Biomedical with a short position of Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and Anoto Group.
Diversification Opportunities for Corline Biomedical and Anoto Group
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corline and Anoto is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Anoto Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anoto Group AB and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with Anoto Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anoto Group AB has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Anoto Group go up and down completely randomly.
Pair Corralation between Corline Biomedical and Anoto Group
Assuming the 90 days trading horizon Corline Biomedical AB is expected to under-perform the Anoto Group. But the stock apears to be less risky and, when comparing its historical volatility, Corline Biomedical AB is 1.9 times less risky than Anoto Group. The stock trades about -0.05 of its potential returns per unit of risk. The Anoto Group AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Anoto Group AB on August 31, 2024 and sell it today you would lose (25.00) from holding Anoto Group AB or give up 67.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Corline Biomedical AB vs. Anoto Group AB
Performance |
| Timeline |
| Corline Biomedical |
| Anoto Group AB |
Corline Biomedical and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and Anoto Group
The main advantage of trading using opposite Corline Biomedical and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical position performs unexpectedly, Anoto Group 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 Anoto Group will offset losses from the drop in Anoto Group's long position.| Corline Biomedical vs. ExpreS2ion Biotech Holding | Corline Biomedical vs. Hansa Biopharma AB | Corline Biomedical vs. Saniona AB | Corline Biomedical vs. Oncopeptides AB |
| Anoto Group vs. Precise Biometrics AB | Anoto Group vs. Fingerprint Cards AB | Anoto Group vs. BioInvent International AB | Anoto Group vs. Bong 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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