Correlation Between Clene and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both Clene and Atlantic Sapphire 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 Clene and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clene Inc and Atlantic Sapphire ASA, you can compare the effects of market volatilities on Clene and Atlantic Sapphire 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 Clene with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clene and Atlantic Sapphire.
Diversification Opportunities for Clene and Atlantic Sapphire
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clene and Atlantic is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Clene Inc and Atlantic Sapphire ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire ASA and Clene 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 Clene Inc are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire ASA has no effect on the direction of Clene i.e., Clene and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between Clene and Atlantic Sapphire
Given the investment horizon of 90 days Clene Inc is expected to generate 0.43 times more return on investment than Atlantic Sapphire. However, Clene Inc is 2.32 times less risky than Atlantic Sapphire. It trades about -0.01 of its potential returns per unit of risk. Atlantic Sapphire ASA is currently generating about -0.03 per unit of risk. If you would invest 840.00 in Clene Inc on August 29, 2024 and sell it today you would lose (452.00) from holding Clene Inc or give up 53.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clene Inc vs. Atlantic Sapphire ASA
Performance |
| Timeline |
| Clene Inc |
| Atlantic Sapphire ASA |
Clene and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clene and Atlantic Sapphire
The main advantage of trading using opposite Clene and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clene position performs unexpectedly, Atlantic Sapphire 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 Atlantic Sapphire will offset losses from the drop in Atlantic Sapphire's long position.| Clene vs. MediciNova | Clene vs. Eliem Therapeutics | Clene vs. Molecular Partners AG | Clene vs. Champions Oncology |
| Atlantic Sapphire vs. Wilmar International | Atlantic Sapphire vs. SLC Agricola SA | Atlantic Sapphire vs. Brasilagro Adr | Atlantic Sapphire vs. Alico Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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