Correlation Between Annexin Pharmaceuticals and Cantargia
Can any of the company-specific risk be diversified away by investing in both Annexin Pharmaceuticals 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 Annexin Pharmaceuticals and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annexin Pharmaceuticals AB and Cantargia AB, you can compare the effects of market volatilities on Annexin Pharmaceuticals 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 Annexin Pharmaceuticals with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annexin Pharmaceuticals and Cantargia.
Diversification Opportunities for Annexin Pharmaceuticals and Cantargia
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Annexin and Cantargia is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Annexin Pharmaceuticals AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Annexin Pharmaceuticals 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 Annexin Pharmaceuticals 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 Annexin Pharmaceuticals i.e., Annexin Pharmaceuticals and Cantargia go up and down completely randomly.
Pair Corralation between Annexin Pharmaceuticals and Cantargia
Assuming the 90 days trading horizon Annexin Pharmaceuticals AB is expected to generate 0.6 times more return on investment than Cantargia. However, Annexin Pharmaceuticals AB is 1.68 times less risky than Cantargia. It trades about -0.05 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.26 per unit of risk. If you would invest 54.00 in Annexin Pharmaceuticals AB on September 1, 2024 and sell it today you would lose (4.00) from holding Annexin Pharmaceuticals AB or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Annexin Pharmaceuticals AB vs. Cantargia AB
Performance |
| Timeline |
| Annexin Pharmaceuticals |
| Cantargia AB |
Annexin Pharmaceuticals and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Annexin Pharmaceuticals and Cantargia
The main advantage of trading using opposite Annexin Pharmaceuticals and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annexin Pharmaceuticals 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.| Annexin Pharmaceuticals vs. ExpreS2ion Biotech Holding | Annexin Pharmaceuticals vs. Hansa Biopharma AB | Annexin Pharmaceuticals vs. Saniona AB | Annexin Pharmaceuticals vs. Oncopeptides AB |
| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |