Correlation Between Cell Impact and VIMAB Group
Can any of the company-specific risk be diversified away by investing in both Cell Impact and VIMAB 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 Cell Impact and VIMAB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cell Impact AB and VIMAB Group AB, you can compare the effects of market volatilities on Cell Impact and VIMAB 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 Cell Impact with a short position of VIMAB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cell Impact and VIMAB Group.
Diversification Opportunities for Cell Impact and VIMAB Group
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cell and VIMAB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cell Impact AB and VIMAB Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIMAB Group AB and Cell Impact 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 Cell Impact AB are associated (or correlated) with VIMAB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIMAB Group AB has no effect on the direction of Cell Impact i.e., Cell Impact and VIMAB Group go up and down completely randomly.
Pair Corralation between Cell Impact and VIMAB Group
Assuming the 90 days horizon Cell Impact AB is expected to under-perform the VIMAB Group. In addition to that, Cell Impact is 1.65 times more volatile than VIMAB Group AB. It trades about -0.03 of its total potential returns per unit of risk. VIMAB Group AB is currently generating about 0.02 per unit of volatility. If you would invest 840.00 in VIMAB Group AB on August 27, 2024 and sell it today you would lose (90.00) from holding VIMAB Group AB or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cell Impact AB vs. VIMAB Group AB
Performance |
| Timeline |
| Cell Impact AB |
| VIMAB Group AB |
Cell Impact and VIMAB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cell Impact and VIMAB Group
The main advantage of trading using opposite Cell Impact and VIMAB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cell Impact position performs unexpectedly, VIMAB 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 VIMAB Group will offset losses from the drop in VIMAB Group's long position.| Cell Impact vs. Impact Coatings publ | Cell Impact vs. Powercell Sweden | Cell Impact vs. Oncopeptides AB | Cell Impact vs. SaltX Technology Holding |
| VIMAB Group vs. Vitec Software Group | VIMAB Group vs. SaltX Technology Holding | VIMAB Group vs. JLT Mobile Computers | VIMAB Group vs. Media and Games |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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