Correlation Between Hansa Biopharma and Senzime AB
Can any of the company-specific risk be diversified away by investing in both Hansa Biopharma and Senzime 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 Senzime 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 Senzime AB, you can compare the effects of market volatilities on Hansa Biopharma and Senzime 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 Senzime AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Biopharma and Senzime AB.
Diversification Opportunities for Hansa Biopharma and Senzime AB
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hansa and Senzime is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Biopharma AB and Senzime AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senzime 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 Senzime AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senzime AB has no effect on the direction of Hansa Biopharma i.e., Hansa Biopharma and Senzime AB go up and down completely randomly.
Pair Corralation between Hansa Biopharma and Senzime AB
Assuming the 90 days trading horizon Hansa Biopharma AB is expected to under-perform the Senzime AB. In addition to that, Hansa Biopharma is 1.03 times more volatile than Senzime AB. It trades about 0.0 of its total potential returns per unit of risk. Senzime AB is currently generating about 0.01 per unit of volatility. If you would invest 745.00 in Senzime AB on September 1, 2024 and sell it today you would lose (119.00) from holding Senzime AB or give up 15.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Hansa Biopharma AB vs. Senzime AB
Performance |
| Timeline |
| Hansa Biopharma AB |
| Senzime AB |
Hansa Biopharma and Senzime AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Biopharma and Senzime AB
The main advantage of trading using opposite Hansa Biopharma and Senzime AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Biopharma position performs unexpectedly, Senzime 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 Senzime AB will offset losses from the drop in Senzime AB's long position.The idea behind Hansa Biopharma AB and Senzime AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Senzime AB vs. C Rad AB | Senzime AB vs. XSpray Pharma AB | Senzime AB vs. Xbrane Biopharma AB | Senzime AB vs. Episurf Medical 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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