Correlation Between CellaVision and Hedera Group
Can any of the company-specific risk be diversified away by investing in both CellaVision and Hedera Group 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 Hedera Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CellaVision AB and Hedera Group publ, you can compare the effects of market volatilities on CellaVision and Hedera Group 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 Hedera Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CellaVision and Hedera Group.
Diversification Opportunities for CellaVision and Hedera Group
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CellaVision and Hedera is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and Hedera Group publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Group publ 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 Hedera Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Group publ has no effect on the direction of CellaVision i.e., CellaVision and Hedera Group go up and down completely randomly.
Pair Corralation between CellaVision and Hedera Group
Assuming the 90 days trading horizon CellaVision AB is expected to under-perform the Hedera Group. But the stock apears to be less risky and, when comparing its historical volatility, CellaVision AB is 2.21 times less risky than Hedera Group. The stock trades about -0.11 of its potential returns per unit of risk. The Hedera Group publ is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 302.00 in Hedera Group publ on September 14, 2024 and sell it today you would lose (2.00) from holding Hedera Group publ or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
CellaVision AB vs. Hedera Group publ
Performance |
| Timeline |
| CellaVision AB |
| Hedera Group publ |
CellaVision and Hedera Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CellaVision and Hedera Group
The main advantage of trading using opposite CellaVision and Hedera Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CellaVision position performs unexpectedly, Hedera Group 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 Hedera Group will offset losses from the drop in Hedera Group's long position.| CellaVision vs. Mendus AB | CellaVision vs. Cantargia AB | CellaVision vs. BioInvent International AB | CellaVision vs. Isofol Medical AB |
| Hedera Group vs. Clean Motion AB | Hedera Group vs. Heliospectra publ AB | Hedera Group vs. Gaming Corps AB | Hedera Group vs. Doxa 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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