Correlation Between Alligator Bioscience and Scandion Oncology
Can any of the company-specific risk be diversified away by investing in both Alligator Bioscience and Scandion Oncology 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 Alligator Bioscience and Scandion Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alligator Bioscience AB and Scandion Oncology AS, you can compare the effects of market volatilities on Alligator Bioscience and Scandion Oncology 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 Alligator Bioscience with a short position of Scandion Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligator Bioscience and Scandion Oncology.
Diversification Opportunities for Alligator Bioscience and Scandion Oncology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alligator and Scandion is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alligator Bioscience AB and Scandion Oncology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandion Oncology and Alligator Bioscience 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 Alligator Bioscience AB are associated (or correlated) with Scandion Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandion Oncology has no effect on the direction of Alligator Bioscience i.e., Alligator Bioscience and Scandion Oncology go up and down completely randomly.
Pair Corralation between Alligator Bioscience and Scandion Oncology
Assuming the 90 days trading horizon Alligator Bioscience AB is expected to generate 19.68 times more return on investment than Scandion Oncology. However, Alligator Bioscience is 19.68 times more volatile than Scandion Oncology AS. It trades about 0.13 of its potential returns per unit of risk. Scandion Oncology AS is currently generating about -0.31 per unit of risk. If you would invest 25.00 in Alligator Bioscience AB on October 30, 2024 and sell it today you would lose (19.40) from holding Alligator Bioscience AB or give up 77.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Alligator Bioscience AB vs. Scandion Oncology AS
Performance |
| Timeline |
| Alligator Bioscience |
| Scandion Oncology |
Alligator Bioscience and Scandion Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligator Bioscience and Scandion Oncology
The main advantage of trading using opposite Alligator Bioscience and Scandion Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligator Bioscience position performs unexpectedly, Scandion Oncology 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 Scandion Oncology will offset losses from the drop in Scandion Oncology's long position.| Alligator Bioscience vs. Vitrolife AB | Alligator Bioscience vs. Biotage AB | Alligator Bioscience vs. Sectra AB | Alligator Bioscience vs. BioGaia AB |
| Scandion Oncology vs. Bavarian Nordic | Scandion Oncology vs. BioPorto | Scandion Oncology vs. Zaptec AS | Scandion Oncology vs. cBrain AS |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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