Correlation Between Acarix AS and Combigene
Can any of the company-specific risk be diversified away by investing in both Acarix AS and Combigene 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 Combigene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acarix AS and Combigene AB, you can compare the effects of market volatilities on Acarix AS and Combigene 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 Combigene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acarix AS and Combigene.
Diversification Opportunities for Acarix AS and Combigene
Significant diversification
The 3 months correlation between Acarix and Combigene is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Acarix AS and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB 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 Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Acarix AS i.e., Acarix AS and Combigene go up and down completely randomly.
Pair Corralation between Acarix AS and Combigene
Assuming the 90 days trading horizon Acarix AS is expected to under-perform the Combigene. But the stock apears to be less risky and, when comparing its historical volatility, Acarix AS is 1.51 times less risky than Combigene. The stock trades about -0.22 of its potential returns per unit of risk. The Combigene AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Combigene AB on September 12, 2024 and sell it today you would earn a total of 26.00 from holding Combigene AB or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acarix AS vs. Combigene AB
Performance |
| Timeline |
| Acarix AS |
| Combigene AB |
Acarix AS and Combigene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acarix AS and Combigene
The main advantage of trading using opposite Acarix AS and Combigene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acarix AS position performs unexpectedly, Combigene 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 Combigene will offset losses from the drop in Combigene's long position.| Acarix AS vs. Mendus AB | Acarix AS vs. Cantargia AB | Acarix AS vs. BioInvent International AB | Acarix AS vs. Isofol Medical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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