Correlation Between Ascendis Health and Zeder Investments
Can any of the company-specific risk be diversified away by investing in both Ascendis Health and Zeder Investments 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 Ascendis Health and Zeder Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Health and Zeder Investments, you can compare the effects of market volatilities on Ascendis Health and Zeder Investments 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 Ascendis Health with a short position of Zeder Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Health and Zeder Investments.
Diversification Opportunities for Ascendis Health and Zeder Investments
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascendis and Zeder is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Health and Zeder Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeder Investments and Ascendis Health 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 Ascendis Health are associated (or correlated) with Zeder Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeder Investments has no effect on the direction of Ascendis Health i.e., Ascendis Health and Zeder Investments go up and down completely randomly.
Pair Corralation between Ascendis Health and Zeder Investments
Assuming the 90 days trading horizon Ascendis Health is expected to generate 2.85 times more return on investment than Zeder Investments. However, Ascendis Health is 2.85 times more volatile than Zeder Investments. It trades about -0.02 of its potential returns per unit of risk. Zeder Investments is currently generating about -0.31 per unit of risk. If you would invest 9,000 in Ascendis Health on October 21, 2024 and sell it today you would lose (300.00) from holding Ascendis Health or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Health vs. Zeder Investments
Performance |
| Timeline |
| Ascendis Health |
| Zeder Investments |
Ascendis Health and Zeder Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Health and Zeder Investments
The main advantage of trading using opposite Ascendis Health and Zeder Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Health position performs unexpectedly, Zeder Investments 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 Zeder Investments will offset losses from the drop in Zeder Investments' long position.| Ascendis Health vs. Nedbank Group | Ascendis Health vs. Harmony Gold Mining | Ascendis Health vs. RCL Foods | Ascendis Health vs. Trematon Capital Investments |
| Zeder Investments vs. Harmony Gold Mining | Zeder Investments vs. Trematon Capital Investments | Zeder Investments vs. Kap Industrial Holdings | Zeder Investments vs. Kumba Iron Ore |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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