Correlation Between Addnode Group and TietoEVRY Corp
Can any of the company-specific risk be diversified away by investing in both Addnode Group and TietoEVRY Corp 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 TietoEVRY Corp 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 TietoEVRY Corp, you can compare the effects of market volatilities on Addnode Group and TietoEVRY Corp 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 TietoEVRY Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addnode Group and TietoEVRY Corp.
Diversification Opportunities for Addnode Group and TietoEVRY Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addnode and TietoEVRY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Addnode Group AB and TietoEVRY Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TietoEVRY Corp 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 TietoEVRY Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TietoEVRY Corp has no effect on the direction of Addnode Group i.e., Addnode Group and TietoEVRY Corp go up and down completely randomly.
Pair Corralation between Addnode Group and TietoEVRY Corp
Assuming the 90 days trading horizon Addnode Group AB is expected to under-perform the TietoEVRY Corp. But the stock apears to be less risky and, when comparing its historical volatility, Addnode Group AB is 1.13 times less risky than TietoEVRY Corp. The stock trades about -0.13 of its potential returns per unit of risk. The TietoEVRY Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 17,174 in TietoEVRY Corp on September 10, 2025 and sell it today you would earn a total of 2,426 from holding TietoEVRY Corp or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addnode Group AB vs. TietoEVRY Corp
Performance |
| Timeline |
| Addnode Group AB |
| TietoEVRY Corp |
Addnode Group and TietoEVRY Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addnode Group and TietoEVRY Corp
The main advantage of trading using opposite Addnode Group and TietoEVRY Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addnode Group position performs unexpectedly, TietoEVRY Corp 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 TietoEVRY Corp will offset losses from the drop in TietoEVRY Corp'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 |
| TietoEVRY Corp vs. Addnode Group AB | TietoEVRY Corp vs. HMS Networks AB | TietoEVRY Corp vs. Embracer Group AB | TietoEVRY Corp vs. Paradox Interactive 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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