Correlation Between Cantargia and Corline Biomedical
Can any of the company-specific risk be diversified away by investing in both Cantargia and Corline Biomedical 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 Corline Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Corline Biomedical AB, you can compare the effects of market volatilities on Cantargia and Corline Biomedical 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 Corline Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Corline Biomedical.
Diversification Opportunities for Cantargia and Corline Biomedical
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantargia and Corline is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Corline Biomedical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corline Biomedical 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 Corline Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corline Biomedical has no effect on the direction of Cantargia i.e., Cantargia and Corline Biomedical go up and down completely randomly.
Pair Corralation between Cantargia and Corline Biomedical
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Corline Biomedical. In addition to that, Cantargia is 1.36 times more volatile than Corline Biomedical AB. It trades about -0.02 of its total potential returns per unit of risk. Corline Biomedical AB is currently generating about 0.02 per unit of volatility. If you would invest 900.00 in Corline Biomedical AB on November 1, 2024 and sell it today you would earn a total of 48.00 from holding Corline Biomedical AB or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Corline Biomedical AB
Performance |
| Timeline |
| Cantargia AB |
| Corline Biomedical |
Cantargia and Corline Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Corline Biomedical
The main advantage of trading using opposite Cantargia and Corline Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Corline Biomedical 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 Corline Biomedical will offset losses from the drop in Corline Biomedical's long position.The idea behind Cantargia AB and Corline Biomedical 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.| Corline Biomedical vs. Bavarian Nordic | Corline Biomedical vs. BioPorto | Corline Biomedical vs. Zaptec AS | Corline Biomedical 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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