Correlation Between Addnode Group and Biotage AB

Can any of the company-specific risk be diversified away by investing in both Addnode Group and Biotage AB 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 Addnode Group and Biotage AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Addnode Group AB and Biotage AB, you can compare the effects of market volatilities on Addnode Group and Biotage AB 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 Addnode Group with a short position of Biotage AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addnode Group and Biotage AB.

Diversification Opportunities for Addnode Group and Biotage AB

0.21

Correlation Coefficient

Addnode Group  Biotage AB

Modest diversification

The 3 months correlation between Addnode and Biotage is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Addnode Group AB and Biotage AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotage AB and Addnode Group 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 Addnode Group AB are associated (or correlated) with Biotage AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotage AB has no effect on the direction of Addnode Group i.e., Addnode Group and Biotage AB go up and down completely randomly.

Pair Corralation between Addnode Group and Biotage AB

Assuming the 90 days trading horizon Addnode Group AB is expected to generate 12.2 times more return on investment than Biotage AB. However, Addnode Group is 12.2 times more volatile than Biotage AB. It trades about 0.1 of its potential returns per unit of risk. Biotage AB is currently generating about 0.19 per unit of risk. If you would invest  9,795  in Addnode Group AB on April 23, 2025 and sell it today you would earn a total of  1,625  from holding Addnode Group AB or generate 16.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Addnode Group AB  vs.  Biotage AB

Addnode Group AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Addnode Group AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Addnode Group sustained solid returns over the last few months and may actually be approaching a breakup point.

Biotage AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Biotage AB are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Biotage AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Addnode Group and Biotage AB

The main advantage of trading using opposite Addnode Group and Biotage AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addnode Group position performs unexpectedly, Biotage AB 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 Biotage AB will offset losses from the drop in Biotage AB's long position.

The idea behind Addnode Group AB and Biotage AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.