Correlation Between Hansa Biopharma and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Hansa Biopharma and Oncopeptides 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 Oncopeptides 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 Oncopeptides AB, you can compare the effects of market volatilities on Hansa Biopharma and Oncopeptides 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 Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Biopharma and Oncopeptides.
Diversification Opportunities for Hansa Biopharma and Oncopeptides
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hansa and Oncopeptides is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Biopharma AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides 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 Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Hansa Biopharma i.e., Hansa Biopharma and Oncopeptides go up and down completely randomly.
Pair Corralation between Hansa Biopharma and Oncopeptides
Assuming the 90 days trading horizon Hansa Biopharma AB is expected to generate 0.62 times more return on investment than Oncopeptides. However, Hansa Biopharma AB is 1.62 times less risky than Oncopeptides. It trades about -0.33 of its potential returns per unit of risk. Oncopeptides AB is currently generating about -0.23 per unit of risk. If you would invest 3,960 in Hansa Biopharma AB on August 25, 2024 and sell it today you would lose (892.00) from holding Hansa Biopharma AB or give up 22.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Biopharma AB vs. Oncopeptides AB
Performance |
| Timeline |
| Hansa Biopharma AB |
| Oncopeptides AB |
Hansa Biopharma and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Biopharma and Oncopeptides
The main advantage of trading using opposite Hansa Biopharma and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Biopharma position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| Hansa Biopharma vs. Bavarian Nordic | Hansa Biopharma vs. BioPorto | Hansa Biopharma vs. Zaptec AS | Hansa Biopharma vs. cBrain AS |
| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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