Correlation Between Swedbank and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Swedbank 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 Swedbank and Anoto Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and Anoto Group AB, you can compare the effects of market volatilities on Swedbank 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 Swedbank with a short position of Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Anoto Group.
Diversification Opportunities for Swedbank and Anoto Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swedbank and Anoto is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank 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 Swedbank 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 Swedbank 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 Swedbank i.e., Swedbank and Anoto Group go up and down completely randomly.
Pair Corralation between Swedbank and Anoto Group
Assuming the 90 days trading horizon Swedbank AB is expected to under-perform the Anoto Group. But the stock apears to be less risky and, when comparing its historical volatility, Swedbank AB is 6.82 times less risky than Anoto Group. The stock trades about -0.02 of its potential returns per unit of risk. The Anoto Group AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Anoto Group AB on August 29, 2024 and sell it today you would lose (2.00) from holding Anoto Group AB or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. Anoto Group AB
Performance |
| Timeline |
| Swedbank AB |
| Anoto Group AB |
Swedbank and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and Anoto Group
The main advantage of trading using opposite Swedbank and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank 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.| Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |