Correlation Between Exact Therapeutics and Ultimovacs ASA
Can any of the company-specific risk be diversified away by investing in both Exact Therapeutics and Ultimovacs 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 Exact Therapeutics and Ultimovacs ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exact Therapeutics AS and Ultimovacs ASA, you can compare the effects of market volatilities on Exact Therapeutics and Ultimovacs 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 Exact Therapeutics with a short position of Ultimovacs ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exact Therapeutics and Ultimovacs ASA.
Diversification Opportunities for Exact Therapeutics and Ultimovacs ASA
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exact and Ultimovacs is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Exact Therapeutics AS and Ultimovacs ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimovacs ASA and Exact 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 Exact Therapeutics AS are associated (or correlated) with Ultimovacs ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimovacs ASA has no effect on the direction of Exact Therapeutics i.e., Exact Therapeutics and Ultimovacs ASA go up and down completely randomly.
Pair Corralation between Exact Therapeutics and Ultimovacs ASA
Assuming the 90 days trading horizon Exact Therapeutics AS is expected to under-perform the Ultimovacs ASA. But the stock apears to be less risky and, when comparing its historical volatility, Exact Therapeutics AS is 1.09 times less risky than Ultimovacs ASA. The stock trades about -0.09 of its potential returns per unit of risk. The Ultimovacs ASA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Ultimovacs ASA on November 2, 2024 and sell it today you would lose (33.00) from holding Ultimovacs ASA or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Exact Therapeutics AS vs. Ultimovacs ASA
Performance |
| Timeline |
| Exact Therapeutics |
| Ultimovacs ASA |
Exact Therapeutics and Ultimovacs ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exact Therapeutics and Ultimovacs ASA
The main advantage of trading using opposite Exact Therapeutics and Ultimovacs ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exact Therapeutics position performs unexpectedly, Ultimovacs 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 Ultimovacs ASA will offset losses from the drop in Ultimovacs ASA's long position.| Exact Therapeutics vs. Helgeland Sparebank | Exact Therapeutics vs. Golden Energy Offshore | Exact Therapeutics vs. Sogn Sparebank | Exact Therapeutics vs. Goodtech |
| Ultimovacs ASA vs. Bergenbio ASA | Ultimovacs ASA vs. Nykode Therapeutics ASA | Ultimovacs ASA vs. PCI Biotech Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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