Correlation Between Cantargia and Elicera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cantargia and Elicera Therapeutics 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 Elicera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Elicera Therapeutics AB, you can compare the effects of market volatilities on Cantargia and Elicera Therapeutics 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 Elicera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Elicera Therapeutics.
Diversification Opportunities for Cantargia and Elicera Therapeutics
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cantargia and Elicera is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Elicera Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicera Therapeutics 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 Elicera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicera Therapeutics has no effect on the direction of Cantargia i.e., Cantargia and Elicera Therapeutics go up and down completely randomly.
Pair Corralation between Cantargia and Elicera Therapeutics
Assuming the 90 days trading horizon Cantargia is expected to generate 6.02 times less return on investment than Elicera Therapeutics. But when comparing it to its historical volatility, Cantargia AB is 3.1 times less risky than Elicera Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Elicera Therapeutics AB is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Elicera Therapeutics AB on October 25, 2024 and sell it today you would earn a total of 77.00 from holding Elicera Therapeutics AB or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Elicera Therapeutics AB
Performance |
| Timeline |
| Cantargia AB |
| Elicera Therapeutics |
Cantargia and Elicera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Elicera Therapeutics
The main advantage of trading using opposite Cantargia and Elicera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Elicera Therapeutics 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 Elicera Therapeutics will offset losses from the drop in Elicera Therapeutics' long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Elicera Therapeutics vs. Idogen AB | Elicera Therapeutics vs. Combigene AB | Elicera Therapeutics vs. Fluicell 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |