Correlation Between Elicera Therapeutics and Cantargia
Can any of the company-specific risk be diversified away by investing in both Elicera Therapeutics and Cantargia 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 Elicera Therapeutics and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elicera Therapeutics AB and Cantargia AB, you can compare the effects of market volatilities on Elicera Therapeutics and Cantargia 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 Elicera Therapeutics with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elicera Therapeutics and Cantargia.
Diversification Opportunities for Elicera Therapeutics and Cantargia
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Elicera and Cantargia is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Elicera Therapeutics AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Elicera 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 Elicera Therapeutics AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Elicera Therapeutics i.e., Elicera Therapeutics and Cantargia go up and down completely randomly.
Pair Corralation between Elicera Therapeutics and Cantargia
Assuming the 90 days trading horizon Elicera Therapeutics AB is expected to generate 3.1 times more return on investment than Cantargia. However, Elicera Therapeutics is 3.1 times more volatile than Cantargia AB. It trades about 0.33 of its potential returns per unit of risk. Cantargia AB is currently generating about 0.17 per unit of risk. If you would invest 175.00 in Elicera Therapeutics AB on October 25, 2024 and sell it today you would earn a total of 77.00 from holding Elicera Therapeutics AB or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elicera Therapeutics AB vs. Cantargia AB
Performance |
| Timeline |
| Elicera Therapeutics |
| Cantargia AB |
Elicera Therapeutics and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elicera Therapeutics and Cantargia
The main advantage of trading using opposite Elicera Therapeutics and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elicera Therapeutics position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Elicera Therapeutics vs. Idogen AB | Elicera Therapeutics vs. Combigene AB | Elicera Therapeutics vs. Fluicell AB |
| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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