Correlation Between Dustin Group and Addnode Group
Can any of the company-specific risk be diversified away by investing in both Dustin Group and Addnode 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 Dustin Group and Addnode Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dustin Group AB and Addnode Group AB, you can compare the effects of market volatilities on Dustin Group and Addnode 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 Dustin Group with a short position of Addnode Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dustin Group and Addnode Group.
Diversification Opportunities for Dustin Group and Addnode Group
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dustin and Addnode is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dustin Group AB and Addnode Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addnode Group AB and Dustin 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 Dustin Group AB are associated (or correlated) with Addnode Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addnode Group AB has no effect on the direction of Dustin Group i.e., Dustin Group and Addnode Group go up and down completely randomly.
Pair Corralation between Dustin Group and Addnode Group
Assuming the 90 days trading horizon Dustin Group AB is expected to under-perform the Addnode Group. In addition to that, Dustin Group is 2.28 times more volatile than Addnode Group AB. It trades about -0.15 of its total potential returns per unit of risk. Addnode Group AB is currently generating about 0.1 per unit of volatility. If you would invest 9,884 in Addnode Group AB on April 24, 2025 and sell it today you would earn a total of 1,536 from holding Addnode Group AB or generate 15.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dustin Group AB vs. Addnode Group AB
Performance |
Timeline |
Dustin Group AB |
Addnode Group AB |
Dustin Group and Addnode Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dustin Group and Addnode Group
The main advantage of trading using opposite Dustin Group and Addnode Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dustin Group position performs unexpectedly, Addnode 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 Addnode Group will offset losses from the drop in Addnode Group's long position.Dustin Group vs. Clas Ohlson AB | Dustin Group vs. Byggmax Group AB | Dustin Group vs. Inwido AB | Dustin Group vs. Dometic Group AB |
Addnode Group vs. Lagercrantz Group AB | Addnode Group vs. Addtech AB | Addnode Group vs. Vitec Software Group | Addnode Group vs. AddLife 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |