Correlation Between C Rad and Stille AB
Can any of the company-specific risk be diversified away by investing in both C Rad and Stille AB 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 C Rad and Stille AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Rad AB and Stille AB, you can compare the effects of market volatilities on C Rad and Stille 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 C Rad with a short position of Stille AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Rad and Stille AB.
Diversification Opportunities for C Rad and Stille AB
Very weak diversification
The 3 months correlation between CRAD-B and Stille is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding C Rad AB and Stille AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stille AB and C Rad 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 C Rad AB are associated (or correlated) with Stille AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stille AB has no effect on the direction of C Rad i.e., C Rad and Stille AB go up and down completely randomly.
Pair Corralation between C Rad and Stille AB
Assuming the 90 days trading horizon C Rad AB is expected to under-perform the Stille AB. In addition to that, C Rad is 1.19 times more volatile than Stille AB. It trades about -0.06 of its total potential returns per unit of risk. Stille AB is currently generating about 0.07 per unit of volatility. If you would invest 15,100 in Stille AB on August 25, 2024 and sell it today you would earn a total of 5,200 from holding Stille AB or generate 34.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
C Rad AB vs. Stille AB
Performance |
| Timeline |
| C Rad AB |
| Stille AB |
C Rad and Stille AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Rad and Stille AB
The main advantage of trading using opposite C Rad and Stille AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Rad position performs unexpectedly, Stille 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 Stille AB will offset losses from the drop in Stille AB's long position.| C Rad vs. CellaVision AB | C Rad vs. Biotage AB | C Rad vs. Boule Diagnostics AB | C Rad vs. RaySearch Laboratories AB |
| Stille AB vs. Xvivo Perfusion AB | Stille AB vs. BICO Group AB | Stille AB vs. Mentice AB | Stille AB vs. SpectraCure 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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