Correlation Between Cantargia and Sivers IMA
Can any of the company-specific risk be diversified away by investing in both Cantargia and Sivers IMA 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 Sivers IMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Sivers IMA Holding, you can compare the effects of market volatilities on Cantargia and Sivers IMA 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 Sivers IMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Sivers IMA.
Diversification Opportunities for Cantargia and Sivers IMA
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cantargia and Sivers is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Sivers IMA Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sivers IMA Holding 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 Sivers IMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sivers IMA Holding has no effect on the direction of Cantargia i.e., Cantargia and Sivers IMA go up and down completely randomly.
Pair Corralation between Cantargia and Sivers IMA
Assuming the 90 days trading horizon Cantargia is expected to generate 1.19 times less return on investment than Sivers IMA. But when comparing it to its historical volatility, Cantargia AB is 4.63 times less risky than Sivers IMA. It trades about 0.22 of its potential returns per unit of risk. Sivers IMA Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 323.00 in Sivers IMA Holding on October 26, 2024 and sell it today you would earn a total of 5.00 from holding Sivers IMA Holding or generate 1.55% 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. Sivers IMA Holding
Performance |
| Timeline |
| Cantargia AB |
| Sivers IMA Holding |
Cantargia and Sivers IMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Sivers IMA
The main advantage of trading using opposite Cantargia and Sivers IMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Sivers IMA 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 Sivers IMA will offset losses from the drop in Sivers IMA's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Sivers IMA vs. Hexatronic Group AB | Sivers IMA vs. Sinch AB | Sivers IMA vs. Embracer Group AB | Sivers IMA vs. SolTech Energy Sweden |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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