Correlation Between AstraZeneca PLC and Cell Impact
Can any of the company-specific risk be diversified away by investing in both AstraZeneca PLC and Cell Impact 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 AstraZeneca PLC and Cell Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstraZeneca PLC and Cell Impact AB, you can compare the effects of market volatilities on AstraZeneca PLC and Cell Impact 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 AstraZeneca PLC with a short position of Cell Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstraZeneca PLC and Cell Impact.
Diversification Opportunities for AstraZeneca PLC and Cell Impact
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AstraZeneca and Cell is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AstraZeneca PLC and Cell Impact AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Impact AB and AstraZeneca PLC 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 AstraZeneca PLC are associated (or correlated) with Cell Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Impact AB has no effect on the direction of AstraZeneca PLC i.e., AstraZeneca PLC and Cell Impact go up and down completely randomly.
Pair Corralation between AstraZeneca PLC and Cell Impact
Assuming the 90 days trading horizon AstraZeneca PLC is expected to generate 0.17 times more return on investment than Cell Impact. However, AstraZeneca PLC is 6.0 times less risky than Cell Impact. It trades about 0.04 of its potential returns per unit of risk. Cell Impact AB is currently generating about 0.0 per unit of risk. If you would invest 131,135 in AstraZeneca PLC on August 26, 2024 and sell it today you would earn a total of 15,065 from holding AstraZeneca PLC or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstraZeneca PLC vs. Cell Impact AB
Performance |
| Timeline |
| AstraZeneca PLC |
| Cell Impact AB |
AstraZeneca PLC and Cell Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstraZeneca PLC and Cell Impact
The main advantage of trading using opposite AstraZeneca PLC and Cell Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstraZeneca PLC position performs unexpectedly, Cell Impact 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 Cell Impact will offset losses from the drop in Cell Impact's long position.| AstraZeneca PLC vs. AB Volvo | AstraZeneca PLC vs. Telefonaktiebolaget LM Ericsson | AstraZeneca PLC vs. H M Hennes | AstraZeneca PLC vs. Investor AB ser |
| Cell Impact vs. AstraZeneca PLC | Cell Impact vs. Investor AB ser | Cell Impact vs. Investor AB ser | Cell Impact vs. Atlas Copco 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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