Correlation Between Camurus AB and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both Camurus AB and Isofol Medical 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 Camurus AB and Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camurus AB and Isofol Medical AB, you can compare the effects of market volatilities on Camurus AB and Isofol Medical 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 Camurus AB with a short position of Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camurus AB and Isofol Medical.
Diversification Opportunities for Camurus AB and Isofol Medical
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camurus and Isofol is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Camurus AB and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Camurus AB 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 Camurus AB are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Camurus AB i.e., Camurus AB and Isofol Medical go up and down completely randomly.
Pair Corralation between Camurus AB and Isofol Medical
Assuming the 90 days trading horizon Camurus AB is expected to generate 0.52 times more return on investment than Isofol Medical. However, Camurus AB is 1.91 times less risky than Isofol Medical. It trades about -0.08 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.22 per unit of risk. If you would invest 59,800 in Camurus AB on September 1, 2024 and sell it today you would lose (2,800) from holding Camurus AB or give up 4.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Camurus AB vs. Isofol Medical AB
Performance |
| Timeline |
| Camurus AB |
| Isofol Medical AB |
Camurus AB and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camurus AB and Isofol Medical
The main advantage of trading using opposite Camurus AB and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camurus AB position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.| Camurus AB vs. Cantargia AB | Camurus AB vs. BioArctic AB | Camurus AB vs. Oncopeptides AB | Camurus AB vs. Hansa Biopharma AB |
| Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Oncopeptides AB | Isofol Medical vs. Hansa Biopharma AB | Isofol Medical 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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