Correlation Between ExpreS2ion Biotech and Polight ASA
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and Polight ASA 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 Polight ASA 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 Polight ASA, you can compare the effects of market volatilities on ExpreS2ion Biotech and Polight ASA 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 Polight ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and Polight ASA.
Diversification Opportunities for ExpreS2ion Biotech and Polight ASA
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ExpreS2ion and Polight is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and Polight ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polight ASA 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 Polight ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polight ASA has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and Polight ASA go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and Polight ASA
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to under-perform the Polight ASA. In addition to that, ExpreS2ion Biotech is 1.01 times more volatile than Polight ASA. It trades about -0.67 of its total potential returns per unit of risk. Polight ASA is currently generating about 0.04 per unit of volatility. If you would invest 409.00 in Polight ASA on August 26, 2024 and sell it today you would earn a total of 8.00 from holding Polight ASA or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. Polight ASA
Performance |
| Timeline |
| ExpreS2ion Biotech |
| Polight ASA |
ExpreS2ion Biotech and Polight ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and Polight ASA
The main advantage of trading using opposite ExpreS2ion Biotech and Polight ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, Polight ASA 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 Polight ASA will offset losses from the drop in Polight ASA's long position.| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
| Polight ASA vs. Elliptic Laboratories AS | Polight ASA vs. Kongsberg Automotive Holding | Polight ASA vs. REC Silicon ASA |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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