Correlation Between Ascelia Pharma and Cantargia
Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Cantargia 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 Ascelia Pharma and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascelia Pharma AB and Cantargia AB, you can compare the effects of market volatilities on Ascelia Pharma and Cantargia 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 Ascelia Pharma with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Cantargia.
Diversification Opportunities for Ascelia Pharma and Cantargia
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ascelia and Cantargia is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Ascelia Pharma 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 Ascelia Pharma AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Cantargia go up and down completely randomly.
Pair Corralation between Ascelia Pharma and Cantargia
Assuming the 90 days trading horizon Ascelia Pharma AB is expected to generate 1.36 times more return on investment than Cantargia. However, Ascelia Pharma is 1.36 times more volatile than Cantargia AB. It trades about 0.0 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.03 per unit of risk. If you would invest 1,468 in Ascelia Pharma AB on October 21, 2024 and sell it today you would lose (1,150) from holding Ascelia Pharma AB or give up 78.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascelia Pharma AB vs. Cantargia AB
Performance |
| Timeline |
| Ascelia Pharma AB |
| Cantargia AB |
Ascelia Pharma and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascelia Pharma and Cantargia
The main advantage of trading using opposite Ascelia Pharma and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascelia Pharma position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic AB |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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