Correlation Between Cellink AB and Artivion
Can any of the company-specific risk be diversified away by investing in both Cellink AB and Artivion 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 Cellink AB and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellink AB and Artivion, you can compare the effects of market volatilities on Cellink AB and Artivion 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 Cellink AB with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellink AB and Artivion.
Diversification Opportunities for Cellink AB and Artivion
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellink and Artivion is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cellink AB and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Cellink 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 Cellink AB are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Cellink AB i.e., Cellink AB and Artivion go up and down completely randomly.
Pair Corralation between Cellink AB and Artivion
Assuming the 90 days horizon Cellink AB is expected to generate 9.67 times less return on investment than Artivion. But when comparing it to its historical volatility, Cellink AB is 1.41 times less risky than Artivion. It trades about 0.03 of its potential returns per unit of risk. Artivion is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,848 in Artivion on October 21, 2024 and sell it today you would earn a total of 224.00 from holding Artivion or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Cellink AB vs. Artivion
Performance |
| Timeline |
| Cellink AB |
| Artivion |
Cellink AB and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellink AB and Artivion
The main advantage of trading using opposite Cellink AB and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellink AB position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| Cellink AB vs. Artivion | Cellink AB vs. Anika Therapeutics | Cellink AB vs. Sight Sciences | Cellink AB vs. Orthofix Medical |
| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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