Correlation Between ExpreS2ion Biotech and Hansa Biopharma
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and Hansa Biopharma 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 ExpreS2ion Biotech and Hansa Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExpreS2ion Biotech Holding and Hansa Biopharma AB, you can compare the effects of market volatilities on ExpreS2ion Biotech and Hansa Biopharma 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 ExpreS2ion Biotech with a short position of Hansa Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and Hansa Biopharma.
Diversification Opportunities for ExpreS2ion Biotech and Hansa Biopharma
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ExpreS2ion and Hansa is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma AB and ExpreS2ion Biotech 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 ExpreS2ion Biotech Holding are associated (or correlated) with Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and Hansa Biopharma go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and Hansa Biopharma
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to under-perform the Hansa Biopharma. In addition to that, ExpreS2ion Biotech is 1.16 times more volatile than Hansa Biopharma AB. It trades about -0.64 of its total potential returns per unit of risk. Hansa Biopharma AB is currently generating about -0.27 per unit of volatility. If you would invest 3,850 in Hansa Biopharma AB on August 29, 2024 and sell it today you would lose (750.00) from holding Hansa Biopharma AB or give up 19.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. Hansa Biopharma AB
Performance |
| Timeline |
| ExpreS2ion Biotech |
| Hansa Biopharma AB |
ExpreS2ion Biotech and Hansa Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and Hansa Biopharma
The main advantage of trading using opposite ExpreS2ion Biotech and Hansa Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, Hansa Biopharma 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 Hansa Biopharma will offset losses from the drop in Hansa Biopharma's long position.| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
| Hansa Biopharma vs. Oncopeptides AB | Hansa Biopharma vs. ExpreS2ion Biotech Holding | Hansa Biopharma vs. BioInvent International AB | Hansa Biopharma vs. Zealand Pharma AS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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