Correlation Between Senzime AB and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Senzime 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 Senzime 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 Senzime AB and Anoto Group AB, you can compare the effects of market volatilities on Senzime 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 Senzime AB with a short position of Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senzime AB and Anoto Group.
Diversification Opportunities for Senzime AB and Anoto Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Senzime and Anoto is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Senzime 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 Senzime 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 Senzime 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 Senzime AB i.e., Senzime AB and Anoto Group go up and down completely randomly.
Pair Corralation between Senzime AB and Anoto Group
Assuming the 90 days trading horizon Senzime AB is expected to generate 0.26 times more return on investment than Anoto Group. However, Senzime AB is 3.81 times less risky than Anoto Group. It trades about -0.19 of its potential returns per unit of risk. Anoto Group AB is currently generating about -0.12 per unit of risk. If you would invest 631.00 in Senzime AB on August 29, 2024 and sell it today you would lose (53.00) from holding Senzime AB or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senzime AB vs. Anoto Group AB
Performance |
| Timeline |
| Senzime AB |
| Anoto Group AB |
Senzime AB and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senzime AB and Anoto Group
The main advantage of trading using opposite Senzime AB and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senzime 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.| Senzime AB vs. GomSpace Group AB | Senzime AB vs. Hansa Biopharma AB | Senzime AB vs. Zealand Pharma AS | Senzime AB vs. BioInvent International AB |
| Anoto Group vs. Enzymatica publ AB | Anoto Group vs. Polygiene AB | Anoto Group vs. Sprint Bioscience AB | Anoto Group vs. XMReality 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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