Correlation Between CellaVision and Vitrolife
Can any of the company-specific risk be diversified away by investing in both CellaVision and Vitrolife 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 Vitrolife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CellaVision AB and Vitrolife AB, you can compare the effects of market volatilities on CellaVision and Vitrolife 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 Vitrolife. Check out your portfolio center. Please also check ongoing floating volatility patterns of CellaVision and Vitrolife.
Diversification Opportunities for CellaVision and Vitrolife
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CellaVision and Vitrolife is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and Vitrolife AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitrolife 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 Vitrolife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitrolife AB has no effect on the direction of CellaVision i.e., CellaVision and Vitrolife go up and down completely randomly.
Pair Corralation between CellaVision and Vitrolife
Assuming the 90 days trading horizon CellaVision AB is expected to generate 1.43 times more return on investment than Vitrolife. However, CellaVision is 1.43 times more volatile than Vitrolife AB. It trades about 0.11 of its potential returns per unit of risk. Vitrolife AB is currently generating about 0.05 per unit of risk. If you would invest 21,150 in CellaVision AB on November 3, 2024 and sell it today you would earn a total of 1,500 from holding CellaVision AB or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CellaVision AB vs. Vitrolife AB
Performance |
| Timeline |
| CellaVision AB |
| Vitrolife AB |
CellaVision and Vitrolife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CellaVision and Vitrolife
The main advantage of trading using opposite CellaVision and Vitrolife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CellaVision position performs unexpectedly, Vitrolife 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 Vitrolife will offset losses from the drop in Vitrolife's long position.| CellaVision vs. Vitrolife AB | CellaVision vs. Biotage AB | CellaVision vs. Sectra AB | CellaVision vs. BioGaia AB |
| Vitrolife vs. Maven Wireless Sweden | Vitrolife vs. FormPipe Software AB | Vitrolife vs. Vitec Software Group | Vitrolife vs. USWE Sports 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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