Correlation Between ExpreS2ion Biotech and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and Oncopeptides 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 Oncopeptides 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 Oncopeptides AB, you can compare the effects of market volatilities on ExpreS2ion Biotech and Oncopeptides 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 Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and Oncopeptides.
Diversification Opportunities for ExpreS2ion Biotech and Oncopeptides
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ExpreS2ion and Oncopeptides is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides 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 Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and Oncopeptides go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and Oncopeptides
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to under-perform the Oncopeptides. But the stock apears to be less risky and, when comparing its historical volatility, ExpreS2ion Biotech Holding is 1.42 times less risky than Oncopeptides. The stock trades about -0.27 of its potential returns per unit of risk. The Oncopeptides AB is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Oncopeptides AB on September 3, 2024 and sell it today you would lose (45.00) from holding Oncopeptides AB or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. Oncopeptides AB
Performance |
| Timeline |
| ExpreS2ion Biotech |
| Oncopeptides AB |
ExpreS2ion Biotech and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and Oncopeptides
The main advantage of trading using opposite ExpreS2ion Biotech and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
| Oncopeptides vs. BioInvent International AB | Oncopeptides vs. Alligator Bioscience AB | Oncopeptides vs. Swedish Orphan Biovitrum | Oncopeptides vs. Anoto Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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