Correlation Between Hansa Biopharma and Egetis Therapeutics
Can any of the company-specific risk be diversified away by investing in both Hansa Biopharma and Egetis Therapeutics 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 Egetis Therapeutics 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 Egetis Therapeutics AB, you can compare the effects of market volatilities on Hansa Biopharma and Egetis Therapeutics 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 Egetis Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Biopharma and Egetis Therapeutics.
Diversification Opportunities for Hansa Biopharma and Egetis Therapeutics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hansa and Egetis is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Biopharma AB and Egetis Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egetis Therapeutics 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 Egetis Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egetis Therapeutics has no effect on the direction of Hansa Biopharma i.e., Hansa Biopharma and Egetis Therapeutics go up and down completely randomly.
Pair Corralation between Hansa Biopharma and Egetis Therapeutics
Assuming the 90 days trading horizon Hansa Biopharma AB is expected to under-perform the Egetis Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Hansa Biopharma AB is 1.18 times less risky than Egetis Therapeutics. The stock trades about 0.0 of its potential returns per unit of risk. The Egetis Therapeutics AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 404.00 in Egetis Therapeutics AB on August 29, 2024 and sell it today you would earn a total of 137.00 from holding Egetis Therapeutics AB or generate 33.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Biopharma AB vs. Egetis Therapeutics AB
Performance |
| Timeline |
| Hansa Biopharma AB |
| Egetis Therapeutics |
Hansa Biopharma and Egetis Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Biopharma and Egetis Therapeutics
The main advantage of trading using opposite Hansa Biopharma and Egetis Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Biopharma position performs unexpectedly, Egetis Therapeutics 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 Egetis Therapeutics will offset losses from the drop in Egetis Therapeutics' 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 |
| Egetis Therapeutics vs. Hansa Biopharma AB | Egetis Therapeutics vs. Xbrane Biopharma AB | Egetis Therapeutics vs. BioArctic 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |