Correlation Between Paradox Interactive and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Paradox Interactive 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 Paradox Interactive and Anoto Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paradox Interactive AB and Anoto Group AB, you can compare the effects of market volatilities on Paradox Interactive 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 Paradox Interactive with a short position of Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paradox Interactive and Anoto Group.
Diversification Opportunities for Paradox Interactive and Anoto Group
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Paradox and Anoto is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Paradox Interactive 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 Paradox Interactive 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 Paradox Interactive 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 Paradox Interactive i.e., Paradox Interactive and Anoto Group go up and down completely randomly.
Pair Corralation between Paradox Interactive and Anoto Group
Assuming the 90 days trading horizon Paradox Interactive AB is expected to generate 0.13 times more return on investment than Anoto Group. However, Paradox Interactive AB is 7.41 times less risky than Anoto Group. It trades about 0.06 of its potential returns per unit of risk. Anoto Group AB is currently generating about -0.01 per unit of risk. If you would invest 21,160 in Paradox Interactive AB on November 3, 2024 and sell it today you would earn a total of 540.00 from holding Paradox Interactive AB or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paradox Interactive AB vs. Anoto Group AB
Performance |
| Timeline |
| Paradox Interactive |
| Anoto Group AB |
Paradox Interactive and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paradox Interactive and Anoto Group
The main advantage of trading using opposite Paradox Interactive and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paradox Interactive 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.| Paradox Interactive vs. Stillfront Group AB | Paradox Interactive vs. Embracer Group AB | Paradox Interactive vs. G5 Entertainment publ | Paradox Interactive vs. Evolution 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |