Correlation Between Sensorion and Spineguard
Can any of the company-specific risk be diversified away by investing in both Sensorion and Spineguard 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 Sensorion and Spineguard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sensorion SA and Spineguard, you can compare the effects of market volatilities on Sensorion and Spineguard 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 Sensorion with a short position of Spineguard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensorion and Spineguard.
Diversification Opportunities for Sensorion and Spineguard
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sensorion and Spineguard is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sensorion SA and Spineguard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spineguard and Sensorion 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 Sensorion SA are associated (or correlated) with Spineguard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spineguard has no effect on the direction of Sensorion i.e., Sensorion and Spineguard go up and down completely randomly.
Pair Corralation between Sensorion and Spineguard
Assuming the 90 days trading horizon Sensorion SA is expected to generate 0.56 times more return on investment than Spineguard. However, Sensorion SA is 1.79 times less risky than Spineguard. It trades about -0.18 of its potential returns per unit of risk. Spineguard is currently generating about -0.35 per unit of risk. If you would invest 69.00 in Sensorion SA on November 9, 2024 and sell it today you would lose (5.00) from holding Sensorion SA or give up 7.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sensorion SA vs. Spineguard
Performance |
Timeline |
Sensorion SA |
Spineguard |
Sensorion and Spineguard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sensorion and Spineguard
The main advantage of trading using opposite Sensorion and Spineguard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensorion position performs unexpectedly, Spineguard 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 Spineguard will offset losses from the drop in Spineguard's long position.Sensorion vs. Poxel SA | Sensorion vs. Quantum Genomics SA | Sensorion vs. Biophytis SA | Sensorion vs. Gensight Biologics SA |
Spineguard vs. Biophytis SA | Spineguard vs. Spineway | Spineguard vs. Novacyt | Spineguard vs. Quantum Genomics SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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