Correlation Between BioInvent International and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both BioInvent International and Ascelia Pharma 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 BioInvent International and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioInvent International AB and Ascelia Pharma AB, you can compare the effects of market volatilities on BioInvent International and Ascelia Pharma 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 BioInvent International with a short position of Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioInvent International and Ascelia Pharma.
Diversification Opportunities for BioInvent International and Ascelia Pharma
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioInvent and Ascelia is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB and BioInvent International 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 BioInvent International AB are associated (or correlated) with Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of BioInvent International i.e., BioInvent International and Ascelia Pharma go up and down completely randomly.
Pair Corralation between BioInvent International and Ascelia Pharma
Assuming the 90 days trading horizon BioInvent International AB is expected to under-perform the Ascelia Pharma. But the stock apears to be less risky and, when comparing its historical volatility, BioInvent International AB is 1.42 times less risky than Ascelia Pharma. The stock trades about -0.09 of its potential returns per unit of risk. The Ascelia Pharma AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Ascelia Pharma AB on November 2, 2024 and sell it today you would earn a total of 66.00 from holding Ascelia Pharma AB or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.03% |
| Values | Daily Returns |
BioInvent International AB vs. Ascelia Pharma AB
Performance |
| Timeline |
| BioInvent International |
| Ascelia Pharma AB |
BioInvent International and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioInvent International and Ascelia Pharma
The main advantage of trading using opposite BioInvent International and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International position performs unexpectedly, Ascelia Pharma 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 Ascelia Pharma will offset losses from the drop in Ascelia Pharma's long position.| BioInvent International vs. Hansa Biopharma AB | BioInvent International vs. Saniona AB | BioInvent International vs. Active Biotech AB | BioInvent International vs. Oncopeptides AB |
| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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