Correlation Between BioPorto and Scandion Oncology
Can any of the company-specific risk be diversified away by investing in both BioPorto 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 BioPorto and Scandion Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioPorto and Scandion Oncology AS, you can compare the effects of market volatilities on BioPorto 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 BioPorto with a short position of Scandion Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioPorto and Scandion Oncology.
Diversification Opportunities for BioPorto and Scandion Oncology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioPorto and Scandion is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BioPorto and Scandion Oncology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandion Oncology and BioPorto 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 BioPorto 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 BioPorto i.e., BioPorto and Scandion Oncology go up and down completely randomly.
Pair Corralation between BioPorto and Scandion Oncology
Assuming the 90 days trading horizon BioPorto is expected to generate 0.46 times more return on investment than Scandion Oncology. However, BioPorto is 2.16 times less risky than Scandion Oncology. It trades about -0.2 of its potential returns per unit of risk. Scandion Oncology AS is currently generating about -0.23 per unit of risk. If you would invest 168.00 in BioPorto on November 7, 2024 and sell it today you would lose (18.00) from holding BioPorto or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BioPorto vs. Scandion Oncology AS
Performance |
| Timeline |
| BioPorto |
| Scandion Oncology |
BioPorto and Scandion Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioPorto and Scandion Oncology
The main advantage of trading using opposite BioPorto and Scandion Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioPorto 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.The idea behind BioPorto and Scandion Oncology AS 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.| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Fluoguide AS | Scandion Oncology vs. Saniona 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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