Correlation Between Hansa Biopharma and Camurus AB
Can any of the company-specific risk be diversified away by investing in both Hansa Biopharma and Camurus 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 Hansa Biopharma and Camurus AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Biopharma AB and Camurus AB, you can compare the effects of market volatilities on Hansa Biopharma and Camurus 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 Hansa Biopharma with a short position of Camurus AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Biopharma and Camurus AB.
Diversification Opportunities for Hansa Biopharma and Camurus AB
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hansa and Camurus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Biopharma AB and Camurus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camurus AB and Hansa Biopharma 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 Hansa Biopharma AB are associated (or correlated) with Camurus AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camurus AB has no effect on the direction of Hansa Biopharma i.e., Hansa Biopharma and Camurus AB go up and down completely randomly.
Pair Corralation between Hansa Biopharma and Camurus AB
Assuming the 90 days trading horizon Hansa Biopharma AB is expected to under-perform the Camurus AB. In addition to that, Hansa Biopharma is 1.44 times more volatile than Camurus AB. It trades about -0.27 of its total potential returns per unit of risk. Camurus AB is currently generating about -0.15 per unit of volatility. If you would invest 60,900 in Camurus AB on August 29, 2024 and sell it today you would lose (4,950) from holding Camurus AB or give up 8.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Biopharma AB vs. Camurus AB
Performance |
| Timeline |
| Hansa Biopharma AB |
| Camurus AB |
Hansa Biopharma and Camurus AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Biopharma and Camurus AB
The main advantage of trading using opposite Hansa Biopharma and Camurus AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Biopharma position performs unexpectedly, Camurus 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 Camurus AB will offset losses from the drop in Camurus AB's long position.| Hansa Biopharma vs. Oncopeptides AB | Hansa Biopharma vs. ExpreS2ion Biotech Holding | Hansa Biopharma vs. BioInvent International AB | Hansa Biopharma vs. Zealand Pharma AS |
| Camurus AB vs. BioArctic AB | Camurus AB vs. Oncopeptides AB | Camurus AB vs. Hansa Biopharma AB | Camurus AB vs. Swedish Orphan Biovitrum |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |