Correlation Between Combigene and Elicera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Combigene and Elicera Therapeutics 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 Combigene and Elicera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Combigene AB and Elicera Therapeutics AB, you can compare the effects of market volatilities on Combigene and Elicera Therapeutics 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 Combigene with a short position of Elicera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Combigene and Elicera Therapeutics.
Diversification Opportunities for Combigene and Elicera Therapeutics
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Combigene and Elicera is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Combigene AB and Elicera Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicera Therapeutics and Combigene 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 Combigene AB are associated (or correlated) with Elicera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicera Therapeutics has no effect on the direction of Combigene i.e., Combigene and Elicera Therapeutics go up and down completely randomly.
Pair Corralation between Combigene and Elicera Therapeutics
Assuming the 90 days trading horizon Combigene AB is expected to under-perform the Elicera Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Combigene AB is 1.96 times less risky than Elicera Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The Elicera Therapeutics AB is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 172.00 in Elicera Therapeutics AB on October 24, 2024 and sell it today you would earn a total of 81.00 from holding Elicera Therapeutics AB or generate 47.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Combigene AB vs. Elicera Therapeutics AB
Performance |
| Timeline |
| Combigene AB |
| Elicera Therapeutics |
Combigene and Elicera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Combigene and Elicera Therapeutics
The main advantage of trading using opposite Combigene and Elicera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Combigene position performs unexpectedly, Elicera Therapeutics 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 Elicera Therapeutics will offset losses from the drop in Elicera Therapeutics' long position.| Combigene vs. Kancera AB | Combigene vs. BioInvent International AB | Combigene vs. Oncopeptides AB | Combigene vs. Acarix AS |
| Elicera Therapeutics vs. Idogen AB | Elicera Therapeutics vs. Combigene AB | Elicera Therapeutics vs. Fluicell 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |