Correlation Between CDON AB and Bactiguard Holding
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By analyzing existing cross correlation between CDON AB and Bactiguard Holding AB, you can compare the effects of market volatilities on CDON AB and Bactiguard Holding 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 CDON AB with a short position of Bactiguard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDON AB and Bactiguard Holding.
Diversification Opportunities for CDON AB and Bactiguard Holding
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CDON and Bactiguard is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CDON AB and Bactiguard Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiguard Holding and CDON AB 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 CDON AB are associated (or correlated) with Bactiguard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiguard Holding has no effect on the direction of CDON AB i.e., CDON AB and Bactiguard Holding go up and down completely randomly.
Pair Corralation between CDON AB and Bactiguard Holding
Assuming the 90 days trading horizon CDON AB is expected to under-perform the Bactiguard Holding. But the stock apears to be less risky and, when comparing its historical volatility, CDON AB is 1.94 times less risky than Bactiguard Holding. The stock trades about -0.16 of its potential returns per unit of risk. The Bactiguard Holding AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4,050 in Bactiguard Holding AB on November 2, 2024 and sell it today you would lose (510.00) from holding Bactiguard Holding AB or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDON AB vs. Bactiguard Holding AB
Performance |
| Timeline |
| CDON AB |
| Bactiguard Holding |
CDON AB and Bactiguard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDON AB and Bactiguard Holding
The main advantage of trading using opposite CDON AB and Bactiguard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDON AB position performs unexpectedly, Bactiguard Holding 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 Bactiguard Holding will offset losses from the drop in Bactiguard Holding's long position.The idea behind CDON AB and Bactiguard Holding AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bactiguard Holding vs. Biotage AB | Bactiguard Holding vs. CellaVision AB | Bactiguard Holding vs. Bonesupport Holding AB | Bactiguard Holding vs. MedCap 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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