Correlation Between CDON AB and CellaVision
Can any of the company-specific risk be diversified away by investing in both CDON AB and CellaVision 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 CDON AB and CellaVision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDON AB and CellaVision AB, you can compare the effects of market volatilities on CDON AB and CellaVision 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 CellaVision. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDON AB and CellaVision.
Diversification Opportunities for CDON AB and CellaVision
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CDON and CellaVision is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CDON AB and CellaVision AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CellaVision AB 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 CellaVision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CellaVision AB has no effect on the direction of CDON AB i.e., CDON AB and CellaVision go up and down completely randomly.
Pair Corralation between CDON AB and CellaVision
Assuming the 90 days trading horizon CDON AB is expected to under-perform the CellaVision. But the stock apears to be less risky and, when comparing its historical volatility, CDON AB is 1.11 times less risky than CellaVision. The stock trades about -0.15 of its potential returns per unit of risk. The CellaVision AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 21,150 in CellaVision AB on November 2, 2024 and sell it today you would earn a total of 1,050 from holding CellaVision AB or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CDON AB vs. CellaVision AB
Performance |
| Timeline |
| CDON AB |
| CellaVision AB |
CDON AB and CellaVision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDON AB and CellaVision
The main advantage of trading using opposite CDON AB and CellaVision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDON AB position performs unexpectedly, CellaVision 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 CellaVision will offset losses from the drop in CellaVision's long position.The idea behind CDON AB and CellaVision 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.| CellaVision vs. Vitrolife AB | CellaVision vs. Biotage AB | CellaVision vs. Sectra AB | CellaVision vs. BioGaia 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |