Correlation Between Spineguard and Sensorion
Can any of the company-specific risk be diversified away by investing in both Spineguard and Sensorion 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 Spineguard and Sensorion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spineguard and Sensorion SA, you can compare the effects of market volatilities on Spineguard and Sensorion 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 Spineguard with a short position of Sensorion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineguard and Sensorion.
Diversification Opportunities for Spineguard and Sensorion
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spineguard and Sensorion is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and Sensorion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensorion SA and Spineguard 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 Spineguard are associated (or correlated) with Sensorion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensorion SA has no effect on the direction of Spineguard i.e., Spineguard and Sensorion go up and down completely randomly.
Pair Corralation between Spineguard and Sensorion
Assuming the 90 days trading horizon Spineguard is expected to under-perform the Sensorion. In addition to that, Spineguard is 1.79 times more volatile than Sensorion SA. It trades about -0.35 of its total potential returns per unit of risk. Sensorion SA is currently generating about -0.18 per unit of volatility. 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 |
Spineguard vs. Sensorion SA
Performance |
| Timeline |
| Spineguard |
| Sensorion SA |
Spineguard and Sensorion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spineguard and Sensorion
The main advantage of trading using opposite Spineguard and Sensorion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineguard position performs unexpectedly, Sensorion 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 Sensorion will offset losses from the drop in Sensorion's long position.| Spineguard vs. Biophytis SA | Spineguard vs. Spineway | Spineguard vs. Novacyt | Spineguard vs. Quantum Genomics SA |
| Sensorion vs. Poxel SA | Sensorion vs. Quantum Genomics SA | Sensorion vs. Biophytis SA | Sensorion vs. Gensight Biologics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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