Correlation Between Corline Biomedical and Exsitec Holding
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and Exsitec Holding 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 Corline Biomedical and Exsitec Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and Exsitec Holding AB, you can compare the effects of market volatilities on Corline Biomedical and Exsitec Holding 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 Corline Biomedical with a short position of Exsitec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and Exsitec Holding.
Diversification Opportunities for Corline Biomedical and Exsitec Holding
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Corline and Exsitec is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding AB and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Exsitec Holding go up and down completely randomly.
Pair Corralation between Corline Biomedical and Exsitec Holding
Assuming the 90 days trading horizon Corline Biomedical AB is expected to generate 2.09 times more return on investment than Exsitec Holding. However, Corline Biomedical is 2.09 times more volatile than Exsitec Holding AB. It trades about -0.02 of its potential returns per unit of risk. Exsitec Holding AB is currently generating about -0.17 per unit of risk. If you would invest 970.00 in Corline Biomedical AB on November 5, 2024 and sell it today you would lose (28.00) from holding Corline Biomedical AB or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corline Biomedical AB vs. Exsitec Holding AB
Performance |
| Timeline |
| Corline Biomedical |
| Exsitec Holding AB |
Corline Biomedical and Exsitec Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and Exsitec Holding
The main advantage of trading using opposite Corline Biomedical and Exsitec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical position performs unexpectedly, Exsitec Holding 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 Exsitec Holding will offset losses from the drop in Exsitec Holding's long position.| Corline Biomedical vs. Oncopeptides AB | Corline Biomedical vs. Camurus AB | Corline Biomedical vs. Hansa Biopharma AB | Corline Biomedical vs. Cantargia AB |
| Exsitec Holding vs. CAG Group AB | Exsitec Holding vs. Know IT AB | Exsitec Holding vs. Enea AB | Exsitec Holding vs. NCAB Group |
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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