Correlation Between Cantargia and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both Cantargia 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 Cantargia and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Ascelia Pharma AB, you can compare the effects of market volatilities on Cantargia 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 Cantargia with a short position of Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Ascelia Pharma.
Diversification Opportunities for Cantargia and Ascelia Pharma
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantargia and Ascelia is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia 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 Cantargia 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 Cantargia 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 Cantargia i.e., Cantargia and Ascelia Pharma go up and down completely randomly.
Pair Corralation between Cantargia and Ascelia Pharma
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Ascelia Pharma. In addition to that, Cantargia is 1.59 times more volatile than Ascelia Pharma AB. It trades about -0.26 of its total potential returns per unit of risk. Ascelia Pharma AB is currently generating about 0.33 per unit of volatility. If you would invest 211.00 in Ascelia Pharma AB on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Ascelia Pharma AB or generate 37.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Ascelia Pharma AB
Performance |
| Timeline |
| Cantargia AB |
| Ascelia Pharma AB |
Cantargia and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Ascelia Pharma
The main advantage of trading using opposite Cantargia and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia 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.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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