Correlation Between Hansa Biopharma and Saniona AB
Can any of the company-specific risk be diversified away by investing in both Hansa Biopharma and Saniona 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 Saniona 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 Saniona AB, you can compare the effects of market volatilities on Hansa Biopharma and Saniona 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 Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Biopharma and Saniona AB.
Diversification Opportunities for Hansa Biopharma and Saniona AB
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hansa and Saniona is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Biopharma AB and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona 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 Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of Hansa Biopharma i.e., Hansa Biopharma and Saniona AB go up and down completely randomly.
Pair Corralation between Hansa Biopharma and Saniona AB
Assuming the 90 days trading horizon Hansa Biopharma AB is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, Hansa Biopharma AB is 3.5 times less risky than Saniona AB. The stock trades about -0.27 of its potential returns per unit of risk. The Saniona AB is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Saniona AB on August 29, 2024 and sell it today you would lose (101.00) from holding Saniona AB or give up 24.57% 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. Saniona AB
Performance |
| Timeline |
| Hansa Biopharma AB |
| Saniona AB |
Hansa Biopharma and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Biopharma and Saniona AB
The main advantage of trading using opposite Hansa Biopharma and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Biopharma position performs unexpectedly, Saniona 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 Saniona AB will offset losses from the drop in Saniona 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 |
| Saniona AB vs. GomSpace Group AB | Saniona AB vs. Hansa Biopharma AB | Saniona AB vs. Zealand Pharma AS | Saniona AB vs. BioInvent International 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |