Correlation Between CBrain AS and Scandion Oncology
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Scandion Oncology 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 CBrain AS and Scandion Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Scandion Oncology AS, you can compare the effects of market volatilities on CBrain AS and Scandion Oncology 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 CBrain AS with a short position of Scandion Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Scandion Oncology.
Diversification Opportunities for CBrain AS and Scandion Oncology
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBrain and Scandion is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Scandion Oncology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandion Oncology and CBrain AS 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 cBrain AS are associated (or correlated) with Scandion Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandion Oncology has no effect on the direction of CBrain AS i.e., CBrain AS and Scandion Oncology go up and down completely randomly.
Pair Corralation between CBrain AS and Scandion Oncology
Assuming the 90 days trading horizon cBrain AS is expected to generate 0.48 times more return on investment than Scandion Oncology. However, cBrain AS is 2.07 times less risky than Scandion Oncology. It trades about 0.06 of its potential returns per unit of risk. Scandion Oncology AS is currently generating about -0.23 per unit of risk. If you would invest 18,820 in cBrain AS on November 7, 2024 and sell it today you would earn a total of 520.00 from holding cBrain AS or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
cBrain AS vs. Scandion Oncology AS
Performance |
| Timeline |
| cBrain AS |
| Scandion Oncology |
CBrain AS and Scandion Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Scandion Oncology
The main advantage of trading using opposite CBrain AS and Scandion Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Scandion Oncology 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 Scandion Oncology will offset losses from the drop in Scandion Oncology's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Fluoguide AS | Scandion Oncology vs. Saniona 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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