Correlation Between Cantargia and Devyser Diagnostics
Can any of the company-specific risk be diversified away by investing in both Cantargia and Devyser Diagnostics 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 Devyser Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Devyser Diagnostics AB, you can compare the effects of market volatilities on Cantargia and Devyser Diagnostics 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 Devyser Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Devyser Diagnostics.
Diversification Opportunities for Cantargia and Devyser Diagnostics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cantargia and Devyser is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Devyser Diagnostics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Devyser Diagnostics 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 Devyser Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Devyser Diagnostics has no effect on the direction of Cantargia i.e., Cantargia and Devyser Diagnostics go up and down completely randomly.
Pair Corralation between Cantargia and Devyser Diagnostics
Assuming the 90 days trading horizon Cantargia AB is expected to generate 0.69 times more return on investment than Devyser Diagnostics. However, Cantargia AB is 1.44 times less risky than Devyser Diagnostics. It trades about -0.19 of its potential returns per unit of risk. Devyser Diagnostics AB is currently generating about -0.29 per unit of risk. If you would invest 189.00 in Cantargia AB on September 13, 2024 and sell it today you would lose (10.00) from holding Cantargia AB or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Devyser Diagnostics AB
Performance |
| Timeline |
| Cantargia AB |
| Devyser Diagnostics |
Cantargia and Devyser Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Devyser Diagnostics
The main advantage of trading using opposite Cantargia and Devyser Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Devyser Diagnostics 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 Devyser Diagnostics will offset losses from the drop in Devyser Diagnostics' long position.The idea behind Cantargia AB and Devyser Diagnostics 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.| Devyser Diagnostics vs. Oncopeptides AB | Devyser Diagnostics vs. Hansa Biopharma AB | Devyser Diagnostics vs. Cantargia AB | Devyser Diagnostics vs. Camurus 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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