Correlation Between Addtech AB and ATON GREEN

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

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

Diversification Opportunities for Addtech AB and ATON GREEN

0.41

Correlation Coefficient

Addtech AB  ATON GREEN

Very weak diversification

The 3 months correlation between Addtech and ATON is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and ATON GREEN STORAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON GREEN STORAGE and Addtech 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 Addtech AB are associated (or correlated) with ATON GREEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON GREEN STORAGE has no effect on the direction of Addtech AB i.e., Addtech AB and ATON GREEN go up and down completely randomly.

Pair Corralation between Addtech AB and ATON GREEN

Assuming the 90 days trading horizon Addtech AB is expected to generate 0.59 times more return on investment than ATON GREEN. However, Addtech AB is 1.68 times less risky than ATON GREEN. It trades about 0.08 of its potential returns per unit of risk. ATON GREEN STORAGE is currently generating about -0.03 per unit of risk. If you would invest  1,280  in Addtech AB on April 21, 2025 and sell it today you would earn a total of  1,738  from holding Addtech AB or generate 135.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Addtech AB  vs.  ATON GREEN STORAGE

Addtech AB

Risk-Adjusted Performance

OK

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

ATON GREEN STORAGE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATON GREEN STORAGE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATON GREEN reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Addtech AB and ATON GREEN

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

The idea behind Addtech AB and ATON GREEN STORAGE 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 Stocks Directory module to find actively traded stocks across global markets.