Correlation Between Cantargia and Alligator Bioscience
Can any of the company-specific risk be diversified away by investing in both Cantargia and Alligator Bioscience 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 Alligator Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Alligator Bioscience AB, you can compare the effects of market volatilities on Cantargia and Alligator Bioscience 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 Alligator Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Alligator Bioscience.
Diversification Opportunities for Cantargia and Alligator Bioscience
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cantargia and Alligator is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Alligator Bioscience AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alligator Bioscience 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 Alligator Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alligator Bioscience has no effect on the direction of Cantargia i.e., Cantargia and Alligator Bioscience go up and down completely randomly.
Pair Corralation between Cantargia and Alligator Bioscience
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Alligator Bioscience. But the stock apears to be less risky and, when comparing its historical volatility, Cantargia AB is 1.29 times less risky than Alligator Bioscience. The stock trades about -0.03 of its potential returns per unit of risk. The Alligator Bioscience AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Alligator Bioscience AB on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Alligator Bioscience AB or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Cantargia AB vs. Alligator Bioscience AB
Performance |
| Timeline |
| Cantargia AB |
| Alligator Bioscience |
Cantargia and Alligator Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Alligator Bioscience
The main advantage of trading using opposite Cantargia and Alligator Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Alligator Bioscience 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 Alligator Bioscience will offset losses from the drop in Alligator Bioscience's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Alligator Bioscience vs. Cantargia AB | Alligator Bioscience vs. BioArctic AB | Alligator Bioscience vs. Oncopeptides AB | Alligator Bioscience vs. Hansa Biopharma 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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