Correlation Between Acarix AS and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Acarix AS and Clinical Laserthermia 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 Acarix AS and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acarix AS and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Acarix AS and Clinical Laserthermia 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 Acarix AS with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acarix AS and Clinical Laserthermia.
Diversification Opportunities for Acarix AS and Clinical Laserthermia
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acarix and Clinical is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Acarix AS and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and Acarix AS 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 Acarix AS are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Acarix AS i.e., Acarix AS and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Acarix AS and Clinical Laserthermia
Assuming the 90 days trading horizon Acarix AS is expected to generate 0.6 times more return on investment than Clinical Laserthermia. However, Acarix AS is 1.66 times less risky than Clinical Laserthermia. It trades about 0.03 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.01 per unit of risk. If you would invest 30.00 in Acarix AS on August 24, 2024 and sell it today you would earn a total of 2.00 from holding Acarix AS or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acarix AS vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Acarix AS |
| Clinical Laserthermia |
Acarix AS and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acarix AS and Clinical Laserthermia
The main advantage of trading using opposite Acarix AS and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acarix AS position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.The idea behind Acarix AS and Clinical Laserthermia Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Clinical Laserthermia vs. Cantargia AB | Clinical Laserthermia vs. Episurf Medical AB | Clinical Laserthermia vs. Karolinska Development AB | Clinical Laserthermia vs. Acarix AS |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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