Correlation Between PDS Biotechnology and Citycon Oyj
Can any of the company-specific risk be diversified away by investing in both PDS Biotechnology and Citycon Oyj 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 PDS Biotechnology and Citycon Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDS Biotechnology Corp and Citycon Oyj, you can compare the effects of market volatilities on PDS Biotechnology and Citycon Oyj 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 PDS Biotechnology with a short position of Citycon Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDS Biotechnology and Citycon Oyj.
Diversification Opportunities for PDS Biotechnology and Citycon Oyj
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PDS and Citycon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PDS Biotechnology Corp and Citycon Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citycon Oyj and PDS Biotechnology 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 PDS Biotechnology Corp are associated (or correlated) with Citycon Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citycon Oyj has no effect on the direction of PDS Biotechnology i.e., PDS Biotechnology and Citycon Oyj go up and down completely randomly.
Pair Corralation between PDS Biotechnology and Citycon Oyj
Assuming the 90 days horizon PDS Biotechnology Corp is expected to under-perform the Citycon Oyj. In addition to that, PDS Biotechnology is 2.96 times more volatile than Citycon Oyj. It trades about -0.04 of its total potential returns per unit of risk. Citycon Oyj is currently generating about -0.05 per unit of volatility. If you would invest 554.00 in Citycon Oyj on October 13, 2024 and sell it today you would lose (226.00) from holding Citycon Oyj or give up 40.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PDS Biotechnology Corp vs. Citycon Oyj
Performance |
| Timeline |
| PDS Biotechnology Corp |
| Citycon Oyj |
PDS Biotechnology and Citycon Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDS Biotechnology and Citycon Oyj
The main advantage of trading using opposite PDS Biotechnology and Citycon Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDS Biotechnology position performs unexpectedly, Citycon Oyj 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 Citycon Oyj will offset losses from the drop in Citycon Oyj's long position.| PDS Biotechnology vs. PT Wintermar Offshore | PDS Biotechnology vs. Discover Financial Services | PDS Biotechnology vs. BANKINTER ADR 2007 | PDS Biotechnology vs. PPHE HOTEL GROUP |
| Citycon Oyj vs. PDS Biotechnology Corp | Citycon Oyj vs. ORMAT TECHNOLOGIES | Citycon Oyj vs. THORNEY TECHS LTD | Citycon Oyj vs. VELA TECHNOLPLC LS 0001 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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