Correlation Between Cantargia and Net Insight
Can any of the company-specific risk be diversified away by investing in both Cantargia and Net Insight 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 Net Insight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Net Insight AB, you can compare the effects of market volatilities on Cantargia and Net Insight 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 Net Insight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Net Insight.
Diversification Opportunities for Cantargia and Net Insight
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cantargia and Net is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Net Insight AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Net Insight 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 Net Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Net Insight AB has no effect on the direction of Cantargia i.e., Cantargia and Net Insight go up and down completely randomly.
Pair Corralation between Cantargia and Net Insight
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Net Insight. In addition to that, Cantargia is 1.56 times more volatile than Net Insight AB. It trades about -0.05 of its total potential returns per unit of risk. Net Insight AB is currently generating about 0.06 per unit of volatility. If you would invest 521.00 in Net Insight AB on September 3, 2024 and sell it today you would earn a total of 205.00 from holding Net Insight AB or generate 39.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Net Insight AB
Performance |
| Timeline |
| Cantargia AB |
| Net Insight AB |
Cantargia and Net Insight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Net Insight
The main advantage of trading using opposite Cantargia and Net Insight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Net Insight 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 Net Insight will offset losses from the drop in Net Insight's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Net Insight vs. New Wave Group | Net Insight vs. Cantargia AB | Net Insight vs. Enea AB | Net Insight vs. Proact IT Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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