Correlation Between Camurus AB and Q Linea
Can any of the company-specific risk be diversified away by investing in both Camurus AB and Q Linea 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 Q Linea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camurus AB and Q linea AB, you can compare the effects of market volatilities on Camurus AB and Q Linea 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 Q Linea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camurus AB and Q Linea.
Diversification Opportunities for Camurus AB and Q Linea
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Camurus and QLINEA is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Camurus AB and Q linea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q linea 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 Q Linea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q linea AB has no effect on the direction of Camurus AB i.e., Camurus AB and Q Linea go up and down completely randomly.
Pair Corralation between Camurus AB and Q Linea
Assuming the 90 days trading horizon Camurus AB is expected to generate 0.35 times more return on investment than Q Linea. However, Camurus AB is 2.87 times less risky than Q Linea. It trades about 0.08 of its potential returns per unit of risk. Q linea AB is currently generating about -0.03 per unit of risk. If you would invest 24,900 in Camurus AB on September 14, 2024 and sell it today you would earn a total of 31,000 from holding Camurus AB or generate 124.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Camurus AB vs. Q linea AB
Performance |
| Timeline |
| Camurus AB |
| Q linea AB |
Camurus AB and Q Linea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camurus AB and Q Linea
The main advantage of trading using opposite Camurus AB and Q Linea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camurus AB position performs unexpectedly, Q Linea 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 Q Linea will offset losses from the drop in Q Linea's long position.| Camurus AB vs. BioArctic AB | Camurus AB vs. Oncopeptides AB | Camurus AB vs. Hansa Biopharma AB | Camurus AB vs. Swedish Orphan Biovitrum |
| Q Linea vs. Immunovia publ AB | Q Linea vs. Camurus AB | Q Linea vs. Hansa Biopharma AB | Q Linea vs. Bonesupport Holding 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |