Correlation Between Egetis Therapeutics and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both Egetis Therapeutics and Isofol Medical 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 Egetis Therapeutics and Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egetis Therapeutics AB and Isofol Medical AB, you can compare the effects of market volatilities on Egetis Therapeutics and Isofol Medical 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 Egetis Therapeutics with a short position of Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egetis Therapeutics and Isofol Medical.
Diversification Opportunities for Egetis Therapeutics and Isofol Medical
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Egetis and Isofol is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Egetis Therapeutics AB and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Egetis Therapeutics 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 Egetis Therapeutics AB are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Egetis Therapeutics i.e., Egetis Therapeutics and Isofol Medical go up and down completely randomly.
Pair Corralation between Egetis Therapeutics and Isofol Medical
Assuming the 90 days trading horizon Egetis Therapeutics AB is expected to generate 0.96 times more return on investment than Isofol Medical. However, Egetis Therapeutics AB is 1.04 times less risky than Isofol Medical. It trades about 0.24 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.22 per unit of risk. If you would invest 441.00 in Egetis Therapeutics AB on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Egetis Therapeutics AB or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egetis Therapeutics AB vs. Isofol Medical AB
Performance |
| Timeline |
| Egetis Therapeutics |
| Isofol Medical AB |
Egetis Therapeutics and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egetis Therapeutics and Isofol Medical
The main advantage of trading using opposite Egetis Therapeutics and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egetis Therapeutics position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.| Egetis Therapeutics vs. ExpreS2ion Biotech Holding | Egetis Therapeutics vs. Hansa Biopharma AB | Egetis Therapeutics vs. Saniona AB | Egetis Therapeutics vs. Oncopeptides AB |
| Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Oncopeptides AB | Isofol Medical vs. Hansa Biopharma AB | Isofol Medical vs. Alligator Bioscience 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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