Correlation Between SCANDION ONC and WuXi AppTec
Can any of the company-specific risk be diversified away by investing in both SCANDION ONC and WuXi AppTec 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 SCANDION ONC and WuXi AppTec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDION ONC DK 0735 and WuXi AppTec Co, you can compare the effects of market volatilities on SCANDION ONC and WuXi AppTec 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 SCANDION ONC with a short position of WuXi AppTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and WuXi AppTec.
Diversification Opportunities for SCANDION ONC and WuXi AppTec
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANDION and WuXi is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and WuXi AppTec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi AppTec and SCANDION ONC 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 SCANDION ONC DK 0735 are associated (or correlated) with WuXi AppTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi AppTec has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and WuXi AppTec go up and down completely randomly.
Pair Corralation between SCANDION ONC and WuXi AppTec
Assuming the 90 days horizon SCANDION ONC DK 0735 is expected to under-perform the WuXi AppTec. In addition to that, SCANDION ONC is 3.02 times more volatile than WuXi AppTec Co. It trades about -0.02 of its total potential returns per unit of risk. WuXi AppTec Co is currently generating about 0.05 per unit of volatility. If you would invest 437.00 in WuXi AppTec Co on September 1, 2024 and sell it today you would earn a total of 118.00 from holding WuXi AppTec Co or generate 27.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDION ONC DK 0735 vs. WuXi AppTec Co
Performance |
| Timeline |
| SCANDION ONC DK |
| WuXi AppTec |
SCANDION ONC and WuXi AppTec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDION ONC and WuXi AppTec
The main advantage of trading using opposite SCANDION ONC and WuXi AppTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDION ONC position performs unexpectedly, WuXi AppTec 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 WuXi AppTec will offset losses from the drop in WuXi AppTec's long position.| SCANDION ONC vs. BYD ELECTRONIC | SCANDION ONC vs. Arrow Electronics | SCANDION ONC vs. Air New Zealand | SCANDION ONC vs. Westinghouse Air Brake |
| WuXi AppTec vs. Danaher | WuXi AppTec vs. Danaher | WuXi AppTec vs. SIEMENS HEALTH ADR050 | WuXi AppTec vs. DexCom Inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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