Correlation Between Cibus Nordic and AB Sagax
Can any of the company-specific risk be diversified away by investing in both Cibus Nordic and AB Sagax 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 Cibus Nordic and AB Sagax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cibus Nordic Real and AB Sagax, you can compare the effects of market volatilities on Cibus Nordic and AB Sagax 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 Cibus Nordic with a short position of AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibus Nordic and AB Sagax.
Diversification Opportunities for Cibus Nordic and AB Sagax
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cibus and SAGA-A is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cibus Nordic Real and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax and Cibus Nordic 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 Cibus Nordic Real are associated (or correlated) with AB Sagax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Sagax has no effect on the direction of Cibus Nordic i.e., Cibus Nordic and AB Sagax go up and down completely randomly.
Pair Corralation between Cibus Nordic and AB Sagax
Assuming the 90 days trading horizon Cibus Nordic Real is expected to generate 0.79 times more return on investment than AB Sagax. However, Cibus Nordic Real is 1.27 times less risky than AB Sagax. It trades about 0.09 of its potential returns per unit of risk. AB Sagax is currently generating about -0.04 per unit of risk. If you would invest 14,555 in Cibus Nordic Real on September 3, 2024 and sell it today you would earn a total of 2,905 from holding Cibus Nordic Real or generate 19.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cibus Nordic Real vs. AB Sagax
Performance |
| Timeline |
| Cibus Nordic Real |
| AB Sagax |
Cibus Nordic and AB Sagax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cibus Nordic and AB Sagax
The main advantage of trading using opposite Cibus Nordic and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibus Nordic position performs unexpectedly, AB Sagax 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 AB Sagax will offset losses from the drop in AB Sagax's long position.| Cibus Nordic vs. Castellum AB | Cibus Nordic vs. Samhllsbyggnadsbolaget i Norden | Cibus Nordic vs. Intrum Justitia AB | Cibus Nordic vs. Tele2 AB |
| AB Sagax vs. Cibus Nordic Real | AB Sagax vs. Samhaellsbyggnadsbolaget i Norden | AB Sagax vs. ALM Equity AB | AB Sagax vs. Castellum 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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