Correlation Between Ascelia Pharma and Scandion Oncology
Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Scandion Oncology 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 Scandion Oncology 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 Scandion Oncology AS, you can compare the effects of market volatilities on Ascelia Pharma and Scandion Oncology 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 Scandion Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Scandion Oncology.
Diversification Opportunities for Ascelia Pharma and Scandion Oncology
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ascelia and Scandion is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Scandion Oncology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandion Oncology 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 Scandion Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandion Oncology has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Scandion Oncology go up and down completely randomly.
Pair Corralation between Ascelia Pharma and Scandion Oncology
Assuming the 90 days trading horizon Ascelia Pharma AB is expected to generate 1.28 times more return on investment than Scandion Oncology. However, Ascelia Pharma is 1.28 times more volatile than Scandion Oncology AS. It trades about 0.01 of its potential returns per unit of risk. Scandion Oncology AS is currently generating about -0.31 per unit of risk. If you would invest 292.00 in Ascelia Pharma AB on October 30, 2024 and sell it today you would lose (2.00) from holding Ascelia Pharma AB or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascelia Pharma AB vs. Scandion Oncology AS
Performance |
| Timeline |
| Ascelia Pharma AB |
| Scandion Oncology |
Ascelia Pharma and Scandion Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascelia Pharma and Scandion Oncology
The main advantage of trading using opposite Ascelia Pharma and Scandion Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascelia Pharma position performs unexpectedly, Scandion Oncology 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 Scandion Oncology will offset losses from the drop in Scandion Oncology's long position.| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic AB |
| Scandion Oncology vs. Bavarian Nordic | Scandion Oncology vs. BioPorto | Scandion Oncology vs. Zaptec AS | Scandion Oncology vs. cBrain 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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