Correlation Between GomSpace Group and Zealand Pharma
Can any of the company-specific risk be diversified away by investing in both GomSpace Group and Zealand Pharma 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 Zealand Pharma 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 Zealand Pharma AS, you can compare the effects of market volatilities on GomSpace Group and Zealand Pharma 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 Zealand Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of GomSpace Group and Zealand Pharma.
Diversification Opportunities for GomSpace Group and Zealand Pharma
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GomSpace and Zealand is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding GomSpace Group AB and Zealand Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zealand Pharma AS 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 Zealand Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zealand Pharma AS has no effect on the direction of GomSpace Group i.e., GomSpace Group and Zealand Pharma go up and down completely randomly.
Pair Corralation between GomSpace Group and Zealand Pharma
Assuming the 90 days trading horizon GomSpace Group is expected to generate 1.47 times less return on investment than Zealand Pharma. In addition to that, GomSpace Group is 1.06 times more volatile than Zealand Pharma AS. It trades about 0.03 of its total potential returns per unit of risk. Zealand Pharma AS is currently generating about 0.04 per unit of volatility. If you would invest 65,350 in Zealand Pharma AS on September 1, 2024 and sell it today you would earn a total of 7,650 from holding Zealand Pharma AS or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
GomSpace Group AB vs. Zealand Pharma AS
Performance |
| Timeline |
| GomSpace Group AB |
| Zealand Pharma AS |
GomSpace Group and Zealand Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GomSpace Group and Zealand Pharma
The main advantage of trading using opposite GomSpace Group and Zealand Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GomSpace Group position performs unexpectedly, Zealand Pharma 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 Zealand Pharma will offset losses from the drop in Zealand Pharma'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 |
| Zealand Pharma vs. Bavarian Nordic | Zealand Pharma vs. Ambu AS | Zealand Pharma vs. Genmab AS | Zealand Pharma vs. ALK Abell AS |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |