Correlation Between Cantargia and Spectrumone Publ
Can any of the company-specific risk be diversified away by investing in both Cantargia and Spectrumone Publ 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 Spectrumone Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Spectrumone publ AB, you can compare the effects of market volatilities on Cantargia and Spectrumone Publ 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 Spectrumone Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Spectrumone Publ.
Diversification Opportunities for Cantargia and Spectrumone Publ
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cantargia and Spectrumone is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Spectrumone publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrumone publ 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 Spectrumone Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrumone publ has no effect on the direction of Cantargia i.e., Cantargia and Spectrumone Publ go up and down completely randomly.
Pair Corralation between Cantargia and Spectrumone Publ
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Spectrumone Publ. In addition to that, Cantargia is 1.64 times more volatile than Spectrumone publ AB. It trades about -0.25 of its total potential returns per unit of risk. Spectrumone publ AB is currently generating about -0.16 per unit of volatility. If you would invest 37.00 in Spectrumone publ AB on August 28, 2024 and sell it today you would lose (6.00) from holding Spectrumone publ AB or give up 16.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cantargia AB vs. Spectrumone publ AB
Performance |
| Timeline |
| Cantargia AB |
| Spectrumone publ |
Cantargia and Spectrumone Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Spectrumone Publ
The main advantage of trading using opposite Cantargia and Spectrumone Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Spectrumone Publ 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 Spectrumone Publ will offset losses from the drop in Spectrumone Publ's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Spectrumone Publ vs. Media and Games | Spectrumone Publ vs. Enersize Oy | Spectrumone Publ 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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