Correlation Between Polygiene and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Polygiene 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 Polygiene and Anoto Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polygiene AB and Anoto Group AB, you can compare the effects of market volatilities on Polygiene 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 Polygiene with a short position of Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygiene and Anoto Group.
Diversification Opportunities for Polygiene and Anoto Group
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polygiene and Anoto is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Polygiene 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 Polygiene 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 Polygiene 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 Polygiene i.e., Polygiene and Anoto Group go up and down completely randomly.
Pair Corralation between Polygiene and Anoto Group
Assuming the 90 days trading horizon Polygiene AB is expected to generate 0.45 times more return on investment than Anoto Group. However, Polygiene AB is 2.24 times less risky than Anoto Group. It trades about 0.08 of its potential returns per unit of risk. Anoto Group AB is currently generating about 0.02 per unit of risk. If you would invest 922.00 in Polygiene AB on September 1, 2024 and sell it today you would earn a total of 338.00 from holding Polygiene AB or generate 36.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Polygiene AB vs. Anoto Group AB
Performance |
| Timeline |
| Polygiene AB |
| Anoto Group AB |
Polygiene and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polygiene and Anoto Group
The main advantage of trading using opposite Polygiene and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygiene 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.| Polygiene vs. SaltX Technology Holding | Polygiene vs. Nexam Chemical Holding | Polygiene vs. AAC Clyde Space |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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