Correlation Between Addnode Group and Net Insight
Can any of the company-specific risk be diversified away by investing in both Addnode Group and Net Insight 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 Net Insight 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 Net Insight AB, you can compare the effects of market volatilities on Addnode Group and Net Insight 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 Net Insight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addnode Group and Net Insight.
Diversification Opportunities for Addnode Group and Net Insight
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Addnode and Net is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Addnode Group AB and Net Insight AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Net Insight 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 Net Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Net Insight AB has no effect on the direction of Addnode Group i.e., Addnode Group and Net Insight go up and down completely randomly.
Pair Corralation between Addnode Group and Net Insight
Assuming the 90 days trading horizon Addnode Group AB is expected to generate 0.33 times more return on investment than Net Insight. However, Addnode Group AB is 3.03 times less risky than Net Insight. It trades about -0.28 of its potential returns per unit of risk. Net Insight AB is currently generating about -0.13 per unit of risk. If you would invest 9,770 in Addnode Group AB on November 18, 2025 and sell it today you would lose (2,530) from holding Addnode Group AB or give up 25.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addnode Group AB vs. Net Insight AB
Performance |
| Timeline |
| Addnode Group AB |
| Net Insight AB |
Addnode Group and Net Insight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addnode Group and Net Insight
The main advantage of trading using opposite Addnode Group and Net Insight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addnode Group position performs unexpectedly, Net Insight 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 Net Insight will offset losses from the drop in Net Insight's long position.| Addnode Group vs. Vitec Software Group | Addnode Group vs. Invisio Communications AB | Addnode Group vs. Modern Times Group | Addnode Group vs. NCAB Group |
| Net Insight vs. Micro Systemation AB | Net Insight vs. Clavister Holding AB | Net Insight vs. Cint Group AB | Net Insight vs. Softronic 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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