Correlation Between Orexo AB and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Orexo AB 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 Orexo AB and Anoto Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orexo AB and Anoto Group AB, you can compare the effects of market volatilities on Orexo AB 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 Orexo AB with a short position of Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orexo AB and Anoto Group.
Diversification Opportunities for Orexo AB and Anoto Group
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orexo and Anoto is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Orexo 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 Orexo AB 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 Orexo 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 Orexo AB i.e., Orexo AB and Anoto Group go up and down completely randomly.
Pair Corralation between Orexo AB and Anoto Group
Assuming the 90 days trading horizon Orexo AB is expected to generate 0.64 times more return on investment than Anoto Group. However, Orexo AB is 1.56 times less risky than Anoto Group. It trades about 0.13 of its potential returns per unit of risk. Anoto Group AB is currently generating about -0.08 per unit of risk. If you would invest 1,100 in Orexo AB on August 29, 2024 and sell it today you would earn a total of 128.00 from holding Orexo AB or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orexo AB vs. Anoto Group AB
Performance |
| Timeline |
| Orexo AB |
| Anoto Group AB |
Orexo AB and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orexo AB and Anoto Group
The main advantage of trading using opposite Orexo AB and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orexo AB 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.| Orexo AB vs. Swedish Orphan Biovitrum | Orexo AB vs. BioInvent International AB | Orexo AB vs. Camurus AB | Orexo AB vs. BioArctic 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |