Correlation Between Episurf Medical and Addnode Group
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Addnode 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 Episurf Medical and Addnode Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Episurf Medical AB and Addnode Group AB, you can compare the effects of market volatilities on Episurf Medical and Addnode 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 Episurf Medical with a short position of Addnode Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Addnode Group.
Diversification Opportunities for Episurf Medical and Addnode Group
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Episurf and Addnode is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Addnode Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addnode Group AB and Episurf Medical 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 Episurf Medical AB are associated (or correlated) with Addnode Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addnode Group AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Addnode Group go up and down completely randomly.
Pair Corralation between Episurf Medical and Addnode Group
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Addnode Group. In addition to that, Episurf Medical is 1.89 times more volatile than Addnode Group AB. It trades about -0.1 of its total potential returns per unit of risk. Addnode Group AB is currently generating about 0.02 per unit of volatility. If you would invest 9,749 in Addnode Group AB on September 14, 2024 and sell it today you would earn a total of 691.00 from holding Addnode Group AB or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Addnode Group AB
Performance |
| Timeline |
| Episurf Medical AB |
| Addnode Group AB |
Episurf Medical and Addnode Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Addnode Group
The main advantage of trading using opposite Episurf Medical and Addnode Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Addnode 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 Addnode Group will offset losses from the drop in Addnode Group's long position.| Episurf Medical vs. Xvivo Perfusion AB | Episurf Medical vs. Bactiguard Holding AB | Episurf Medical vs. SpectraCure AB | Episurf Medical vs. Senzime AB |
| Addnode Group vs. Svenska Aerogel Holding | Addnode Group vs. Acarix AS | Addnode Group vs. Clean Motion AB | Addnode Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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