Correlation Between CellaVision and Crunchfish
Can any of the company-specific risk be diversified away by investing in both CellaVision and Crunchfish 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 Crunchfish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CellaVision AB and Crunchfish AB, you can compare the effects of market volatilities on CellaVision and Crunchfish 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 Crunchfish. Check out your portfolio center. Please also check ongoing floating volatility patterns of CellaVision and Crunchfish.
Diversification Opportunities for CellaVision and Crunchfish
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CellaVision and Crunchfish is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and Crunchfish AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crunchfish 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 Crunchfish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crunchfish AB has no effect on the direction of CellaVision i.e., CellaVision and Crunchfish go up and down completely randomly.
Pair Corralation between CellaVision and Crunchfish
Assuming the 90 days trading horizon CellaVision AB is expected to generate 0.35 times more return on investment than Crunchfish. However, CellaVision AB is 2.85 times less risky than Crunchfish. It trades about 0.01 of its potential returns per unit of risk. Crunchfish AB is currently generating about -0.06 per unit of risk. If you would invest 23,663 in CellaVision AB on November 5, 2024 and sell it today you would lose (1,013) from holding CellaVision AB or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CellaVision AB vs. Crunchfish AB
Performance |
| Timeline |
| CellaVision AB |
| Crunchfish AB |
CellaVision and Crunchfish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CellaVision and Crunchfish
The main advantage of trading using opposite CellaVision and Crunchfish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CellaVision position performs unexpectedly, Crunchfish 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 Crunchfish will offset losses from the drop in Crunchfish's long position.| CellaVision vs. Vitrolife AB | CellaVision vs. Biotage AB | CellaVision vs. Sectra AB | CellaVision vs. BioGaia AB |
| Crunchfish vs. Bambuser AB | Crunchfish vs. Maha Energy AB | Crunchfish vs. Cantargia AB | Crunchfish vs. Minesto 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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