Correlation Between Cantargia and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Cantargia and Oncopeptides 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 Oncopeptides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Oncopeptides AB, you can compare the effects of market volatilities on Cantargia and Oncopeptides 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 Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Oncopeptides.
Diversification Opportunities for Cantargia and Oncopeptides
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cantargia and Oncopeptides is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides 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 Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Cantargia i.e., Cantargia and Oncopeptides go up and down completely randomly.
Pair Corralation between Cantargia and Oncopeptides
Assuming the 90 days trading horizon Cantargia AB is expected to generate 0.54 times more return on investment than Oncopeptides. However, Cantargia AB is 1.84 times less risky than Oncopeptides. It trades about 0.21 of its potential returns per unit of risk. Oncopeptides AB is currently generating about 0.02 per unit of risk. If you would invest 170.00 in Cantargia AB on November 3, 2024 and sell it today you would earn a total of 17.00 from holding Cantargia AB or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Oncopeptides AB
Performance |
| Timeline |
| Cantargia AB |
| Oncopeptides AB |
Cantargia and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Oncopeptides
The main advantage of trading using opposite Cantargia and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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.
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