Correlation Between Cantargia and BioArctic
Can any of the company-specific risk be diversified away by investing in both Cantargia and BioArctic 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 BioArctic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and BioArctic AB, you can compare the effects of market volatilities on Cantargia and BioArctic 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 BioArctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and BioArctic.
Diversification Opportunities for Cantargia and BioArctic
Pay attention - limited upside
The 3 months correlation between Cantargia and BioArctic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and BioArctic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioArctic 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 BioArctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioArctic AB has no effect on the direction of Cantargia i.e., Cantargia and BioArctic go up and down completely randomly.
Pair Corralation between Cantargia and BioArctic
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the BioArctic. In addition to that, Cantargia is 1.16 times more volatile than BioArctic AB. It trades about -0.04 of its total potential returns per unit of risk. BioArctic AB is currently generating about -0.01 per unit of volatility. If you would invest 28,660 in BioArctic AB on August 29, 2024 and sell it today you would lose (9,220) from holding BioArctic AB or give up 32.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. BioArctic AB
Performance |
| Timeline |
| Cantargia AB |
| BioArctic AB |
Cantargia and BioArctic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and BioArctic
The main advantage of trading using opposite Cantargia and BioArctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, BioArctic 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 BioArctic will offset losses from the drop in BioArctic's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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