Correlation Between Cantargia and Saniona AB
Can any of the company-specific risk be diversified away by investing in both Cantargia and Saniona AB 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 Saniona AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Saniona AB, you can compare the effects of market volatilities on Cantargia and Saniona AB 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 Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Saniona AB.
Diversification Opportunities for Cantargia and Saniona AB
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cantargia and Saniona is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona 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 Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of Cantargia i.e., Cantargia and Saniona AB go up and down completely randomly.
Pair Corralation between Cantargia and Saniona AB
Assuming the 90 days trading horizon Cantargia AB is expected to generate 0.71 times more return on investment than Saniona AB. However, Cantargia AB is 1.41 times less risky than Saniona AB. It trades about -0.06 of its potential returns per unit of risk. Saniona AB is currently generating about -0.24 per unit of risk. If you would invest 184.00 in Cantargia AB on October 20, 2024 and sell it today you would lose (7.00) from holding Cantargia AB or give up 3.8% 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. Saniona AB
Performance |
| Timeline |
| Cantargia AB |
| Saniona AB |
Cantargia and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Saniona AB
The main advantage of trading using opposite Cantargia and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Saniona AB 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 Saniona AB will offset losses from the drop in Saniona AB's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Saniona AB vs. GomSpace Group AB | Saniona AB vs. Hansa Biopharma AB | Saniona AB vs. Zealand Pharma AS | Saniona AB vs. BioInvent International 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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