Correlation Between AlzeCure Pharma and Saniona AB
Can any of the company-specific risk be diversified away by investing in both AlzeCure Pharma and Saniona AB 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 AlzeCure Pharma and Saniona AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AlzeCure Pharma and Saniona AB, you can compare the effects of market volatilities on AlzeCure Pharma and Saniona AB 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 AlzeCure Pharma with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AlzeCure Pharma and Saniona AB.
Diversification Opportunities for AlzeCure Pharma and Saniona AB
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AlzeCure and Saniona is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AlzeCure Pharma and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB and AlzeCure 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 AlzeCure Pharma are associated (or correlated) with Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of AlzeCure Pharma i.e., AlzeCure Pharma and Saniona AB go up and down completely randomly.
Pair Corralation between AlzeCure Pharma and Saniona AB
Assuming the 90 days trading horizon AlzeCure Pharma is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, AlzeCure Pharma is 3.54 times less risky than Saniona AB. The stock trades about -0.24 of its potential returns per unit of risk. The Saniona AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 397.00 in Saniona AB on September 1, 2024 and sell it today you would earn a total of 318.00 from holding Saniona AB or generate 80.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AlzeCure Pharma vs. Saniona AB
Performance |
| Timeline |
| AlzeCure Pharma |
| Saniona AB |
AlzeCure Pharma and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AlzeCure Pharma and Saniona AB
The main advantage of trading using opposite AlzeCure Pharma and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AlzeCure Pharma position performs unexpectedly, Saniona AB 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 Saniona AB will offset losses from the drop in Saniona AB's long position.| AlzeCure Pharma vs. Kancera AB | AlzeCure Pharma vs. Cyxone AB | AlzeCure Pharma vs. Lidds AB | AlzeCure Pharma vs. Cantargia AB |
| Saniona AB vs. Cantargia AB | Saniona AB vs. BioArctic AB | Saniona AB vs. Oncopeptides AB | Saniona AB vs. Hansa Biopharma 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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