Correlation Between Fluoguide and Saniona AB
Can any of the company-specific risk be diversified away by investing in both Fluoguide and Saniona AB 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 Fluoguide and Saniona AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluoguide AS and Saniona AB, you can compare the effects of market volatilities on Fluoguide and Saniona AB 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 Fluoguide with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluoguide and Saniona AB.
Diversification Opportunities for Fluoguide and Saniona AB
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fluoguide and Saniona is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fluoguide AS and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB and Fluoguide 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 Fluoguide AS are associated (or correlated) with Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of Fluoguide i.e., Fluoguide and Saniona AB go up and down completely randomly.
Pair Corralation between Fluoguide and Saniona AB
Assuming the 90 days trading horizon Fluoguide AS is expected to generate 1.14 times more return on investment than Saniona AB. However, Fluoguide is 1.14 times more volatile than Saniona AB. It trades about 0.17 of its potential returns per unit of risk. Saniona AB is currently generating about 0.01 per unit of risk. If you would invest 4,080 in Fluoguide AS on November 3, 2024 and sell it today you would earn a total of 930.00 from holding Fluoguide AS or generate 22.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluoguide AS vs. Saniona AB
Performance |
| Timeline |
| Fluoguide AS |
| Saniona AB |
Fluoguide and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluoguide and Saniona AB
The main advantage of trading using opposite Fluoguide and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluoguide position performs unexpectedly, Saniona AB 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 Saniona AB will offset losses from the drop in Saniona AB's long position.| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
| Saniona AB vs. GomSpace Group AB | Saniona AB vs. Hansa Biopharma AB | Saniona AB vs. Zealand Pharma AS | Saniona AB vs. BioInvent International 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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