Correlation Between CellaVision and BioArctic
Can any of the company-specific risk be diversified away by investing in both CellaVision and BioArctic 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 CellaVision and BioArctic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CellaVision AB and BioArctic AB, you can compare the effects of market volatilities on CellaVision and BioArctic 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 CellaVision with a short position of BioArctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CellaVision and BioArctic.
Diversification Opportunities for CellaVision and BioArctic
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CellaVision and BioArctic is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and BioArctic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioArctic AB and CellaVision 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 CellaVision AB are associated (or correlated) with BioArctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioArctic AB has no effect on the direction of CellaVision i.e., CellaVision and BioArctic go up and down completely randomly.
Pair Corralation between CellaVision and BioArctic
Assuming the 90 days trading horizon CellaVision AB is expected to generate 0.88 times more return on investment than BioArctic. However, CellaVision AB is 1.14 times less risky than BioArctic. It trades about 0.02 of its potential returns per unit of risk. BioArctic AB is currently generating about -0.01 per unit of risk. If you would invest 20,979 in CellaVision AB on August 29, 2024 and sell it today you would earn a total of 1,171 from holding CellaVision AB or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CellaVision AB vs. BioArctic AB
Performance |
| Timeline |
| CellaVision AB |
| BioArctic AB |
CellaVision and BioArctic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CellaVision and BioArctic
The main advantage of trading using opposite CellaVision and BioArctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CellaVision position performs unexpectedly, BioArctic 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 BioArctic will offset losses from the drop in BioArctic's long position.| CellaVision vs. GomSpace Group AB | CellaVision vs. Hansa Biopharma AB | CellaVision vs. Zealand Pharma AS | CellaVision vs. BioInvent International AB |
| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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