Correlation Between Cantargia and Dignitana
Can any of the company-specific risk be diversified away by investing in both Cantargia and Dignitana 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 Dignitana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Dignitana AB, you can compare the effects of market volatilities on Cantargia and Dignitana 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 Dignitana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Dignitana.
Diversification Opportunities for Cantargia and Dignitana
Good diversification
The 3 months correlation between Cantargia and Dignitana is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Dignitana AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dignitana 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 Dignitana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dignitana AB has no effect on the direction of Cantargia i.e., Cantargia and Dignitana go up and down completely randomly.
Pair Corralation between Cantargia and Dignitana
Assuming the 90 days trading horizon Cantargia AB is expected to generate 1.08 times more return on investment than Dignitana. However, Cantargia is 1.08 times more volatile than Dignitana AB. It trades about 0.0 of its potential returns per unit of risk. Dignitana AB is currently generating about -0.04 per unit of risk. If you would invest 362.00 in Cantargia AB on September 3, 2024 and sell it today you would lose (182.00) from holding Cantargia AB or give up 50.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Dignitana AB
Performance |
| Timeline |
| Cantargia AB |
| Dignitana AB |
Cantargia and Dignitana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Dignitana
The main advantage of trading using opposite Cantargia and Dignitana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Dignitana 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 Dignitana will offset losses from the drop in Dignitana's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Dignitana vs. C Rad AB | Dignitana vs. Paxman AB | Dignitana vs. Enzymatica publ AB | Dignitana vs. Episurf Medical 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |