Correlation Between BioInvent International and Cantargia
Can any of the company-specific risk be diversified away by investing in both BioInvent International 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 BioInvent International and Cantargia 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 Cantargia AB, you can compare the effects of market volatilities on BioInvent International 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 BioInvent International with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioInvent International and Cantargia.
Diversification Opportunities for BioInvent International and Cantargia
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BioInvent and Cantargia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia 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 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 BioInvent International i.e., BioInvent International and Cantargia go up and down completely randomly.
Pair Corralation between BioInvent International and Cantargia
Assuming the 90 days trading horizon BioInvent International AB is expected to generate 0.4 times more return on investment than Cantargia. However, BioInvent International AB is 2.5 times less risky than Cantargia. It trades about 0.0 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.25 per unit of risk. If you would invest 4,600 in BioInvent International AB on August 28, 2024 and sell it today you would lose (30.00) from holding BioInvent International AB or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioInvent International AB vs. Cantargia AB
Performance |
| Timeline |
| BioInvent International |
| Cantargia AB |
BioInvent International and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioInvent International and Cantargia
The main advantage of trading using opposite BioInvent International and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International 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.The idea behind BioInvent International AB and Cantargia AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |