Correlation Between Kinnevik Investment and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Oncimmune Holdings 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 Kinnevik Investment and Oncimmune Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Oncimmune Holdings plc, you can compare the effects of market volatilities on Kinnevik Investment and Oncimmune Holdings 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 Kinnevik Investment with a short position of Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Oncimmune Holdings.
Diversification Opportunities for Kinnevik Investment and Oncimmune Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinnevik and Oncimmune is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Oncimmune Holdings
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 1.39 times more return on investment than Oncimmune Holdings. However, Kinnevik Investment is 1.39 times more volatile than Oncimmune Holdings plc. It trades about 0.02 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.11 per unit of risk. If you would invest 7,566 in Kinnevik Investment AB on September 3, 2024 and sell it today you would earn a total of 34.00 from holding Kinnevik Investment AB or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Kinnevik Investment |
| Oncimmune Holdings plc |
Kinnevik Investment and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Oncimmune Holdings
The main advantage of trading using opposite Kinnevik Investment and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Kinnevik Investment vs. Catalyst Media Group | Kinnevik Investment vs. CATLIN GROUP | Kinnevik Investment vs. Magnora ASA | Kinnevik Investment vs. RTW Venture Fund |
| Oncimmune Holdings vs. Finnair Oyj | Oncimmune Holdings vs. Wizz Air Holdings | Oncimmune Holdings vs. Kinnevik Investment AB | Oncimmune Holdings vs. Odyssean Investment Trust |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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