Correlation Between CirChem AB and Saniona AB
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By analyzing existing cross correlation between CirChem AB and Saniona AB TO, you can compare the effects of market volatilities on CirChem AB and Saniona AB 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 CirChem AB with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CirChem AB and Saniona AB.
Diversification Opportunities for CirChem AB and Saniona AB
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CirChem and Saniona is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CirChem AB and Saniona AB TO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB TO and CirChem AB 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 CirChem AB are associated (or correlated) with Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB TO has no effect on the direction of CirChem AB i.e., CirChem AB and Saniona AB go up and down completely randomly.
Pair Corralation between CirChem AB and Saniona AB
Assuming the 90 days trading horizon CirChem AB is expected to generate 15.43 times less return on investment than Saniona AB. But when comparing it to its historical volatility, CirChem AB is 4.56 times less risky than Saniona AB. It trades about 0.03 of its potential returns per unit of risk. Saniona AB TO is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Saniona AB TO on October 12, 2024 and sell it today you would earn a total of 128.00 from holding Saniona AB TO or generate 304.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 43.32% |
Values | Daily Returns |
CirChem AB vs. Saniona AB TO
Performance |
Timeline |
CirChem AB |
Saniona AB TO |
CirChem AB and Saniona AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CirChem AB and Saniona AB
The main advantage of trading using opposite CirChem AB and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CirChem AB position performs unexpectedly, Saniona AB 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 Saniona AB will offset losses from the drop in Saniona AB's long position.CirChem AB vs. Intervacc AB | CirChem AB vs. Alzinova AB | CirChem AB vs. Clinical Laserthermia Systems | CirChem AB vs. AAC Clyde Space |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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