Correlation Between FOKUS MINING and Addtech AB
Can any of the company-specific risk be diversified away by investing in both FOKUS MINING and Addtech 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 FOKUS MINING and Addtech AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOKUS MINING P and Addtech AB, you can compare the effects of market volatilities on FOKUS MINING and Addtech 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 FOKUS MINING with a short position of Addtech AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOKUS MINING and Addtech AB.
Diversification Opportunities for FOKUS MINING and Addtech AB
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between FOKUS and Addtech is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding FOKUS MINING P and Addtech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addtech AB and FOKUS MINING 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 FOKUS MINING P are associated (or correlated) with Addtech AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addtech AB has no effect on the direction of FOKUS MINING i.e., FOKUS MINING and Addtech AB go up and down completely randomly.
Pair Corralation between FOKUS MINING and Addtech AB
Assuming the 90 days trading horizon FOKUS MINING P is expected to under-perform the Addtech AB. In addition to that, FOKUS MINING is 2.26 times more volatile than Addtech AB. It trades about -0.02 of its total potential returns per unit of risk. Addtech AB is currently generating about 0.08 per unit of volatility. If you would invest 2,734 in Addtech AB on April 23, 2025 and sell it today you would earn a total of 284.00 from holding Addtech AB or generate 10.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
FOKUS MINING P vs. Addtech AB
Performance |
Timeline |
FOKUS MINING P |
Addtech AB |
FOKUS MINING and Addtech AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FOKUS MINING and Addtech AB
The main advantage of trading using opposite FOKUS MINING and Addtech AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOKUS MINING position performs unexpectedly, Addtech 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 Addtech AB will offset losses from the drop in Addtech AB's long position.FOKUS MINING vs. ECHO INVESTMENT ZY | FOKUS MINING vs. United Airlines Holdings | FOKUS MINING vs. Chuangs China Investments | FOKUS MINING vs. PennantPark Investment |
Addtech AB vs. KAUFMAN ET BROAD | Addtech AB vs. Television Broadcasts Limited | Addtech AB vs. Gaztransport Technigaz SA | Addtech AB vs. TEXAS ROADHOUSE |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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 | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |