Correlation Between GomSpace Group and Senzime AB
Can any of the company-specific risk be diversified away by investing in both GomSpace Group and Senzime 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 GomSpace Group and Senzime AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GomSpace Group AB and Senzime AB, you can compare the effects of market volatilities on GomSpace Group and Senzime 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 GomSpace Group with a short position of Senzime AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of GomSpace Group and Senzime AB.
Diversification Opportunities for GomSpace Group and Senzime AB
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GomSpace and Senzime is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GomSpace Group AB and Senzime AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senzime AB and GomSpace Group 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 GomSpace Group AB are associated (or correlated) with Senzime AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senzime AB has no effect on the direction of GomSpace Group i.e., GomSpace Group and Senzime AB go up and down completely randomly.
Pair Corralation between GomSpace Group and Senzime AB
Assuming the 90 days trading horizon GomSpace Group AB is expected to generate 1.27 times more return on investment than Senzime AB. However, GomSpace Group is 1.27 times more volatile than Senzime AB. It trades about 0.19 of its potential returns per unit of risk. Senzime AB is currently generating about 0.0 per unit of risk. If you would invest 409.00 in GomSpace Group AB on September 1, 2024 and sell it today you would earn a total of 49.00 from holding GomSpace Group AB or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GomSpace Group AB vs. Senzime AB
Performance |
| Timeline |
| GomSpace Group AB |
| Senzime AB |
GomSpace Group and Senzime AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GomSpace Group and Senzime AB
The main advantage of trading using opposite GomSpace Group and Senzime AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GomSpace Group position performs unexpectedly, Senzime 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 Senzime AB will offset losses from the drop in Senzime AB's long position.| GomSpace Group vs. Ambu AS | GomSpace Group vs. Bavarian Nordic | GomSpace Group vs. Fingerprint Cards AB | GomSpace Group vs. Zealand Pharma AS |
| Senzime AB vs. C Rad AB | Senzime AB vs. XSpray Pharma AB | Senzime AB vs. Xbrane Biopharma AB | Senzime AB vs. Episurf Medical 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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