Correlation Between Cantargia and Biovica International
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By analyzing existing cross correlation between Cantargia AB and Biovica International AB, you can compare the effects of market volatilities on Cantargia and Biovica International 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 Biovica International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Biovica International.
Diversification Opportunities for Cantargia and Biovica International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cantargia and Biovica is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Biovica International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biovica International 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 Biovica International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biovica International has no effect on the direction of Cantargia i.e., Cantargia and Biovica International go up and down completely randomly.
Pair Corralation between Cantargia and Biovica International
Assuming the 90 days trading horizon Cantargia AB is expected to generate 1.17 times more return on investment than Biovica International. However, Cantargia is 1.17 times more volatile than Biovica International AB. It trades about 0.0 of its potential returns per unit of risk. Biovica International AB is currently generating about -0.04 per unit of risk. If you would invest 355.00 in Cantargia AB on August 24, 2024 and sell it today you would lose (174.00) from holding Cantargia AB or give up 49.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Biovica International AB
Performance |
| Timeline |
| Cantargia AB |
| Biovica International |
Cantargia and Biovica International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Biovica International
The main advantage of trading using opposite Cantargia and Biovica International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Biovica International 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 Biovica International will offset losses from the drop in Biovica International's long position.The idea behind Cantargia AB and Biovica International AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Biovica International vs. Bavarian Nordic | Biovica International vs. BioPorto | Biovica International vs. Zaptec AS | Biovica International vs. cBrain AS |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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