Correlation Between Immunovia Publ and Cantargia
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and Cantargia 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 Immunovia Publ and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovia publ AB and Cantargia AB, you can compare the effects of market volatilities on Immunovia Publ and Cantargia 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 Immunovia Publ with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Cantargia.
Diversification Opportunities for Immunovia Publ and Cantargia
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Immunovia and Cantargia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Immunovia Publ 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 Immunovia publ AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and Cantargia go up and down completely randomly.
Pair Corralation between Immunovia Publ and Cantargia
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 4.12 times more return on investment than Cantargia. However, Immunovia Publ is 4.12 times more volatile than Cantargia AB. It trades about 0.05 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.04 per unit of risk. If you would invest 103.00 in Immunovia publ AB on September 12, 2024 and sell it today you would lose (27.00) from holding Immunovia publ AB or give up 26.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovia publ AB vs. Cantargia AB
Performance |
| Timeline |
| Immunovia publ AB |
| Cantargia AB |
Immunovia Publ and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovia Publ and Cantargia
The main advantage of trading using opposite Immunovia Publ and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Immunovia Publ vs. Oncopeptides AB | Immunovia Publ vs. Hansa Biopharma AB | Immunovia Publ vs. Cantargia AB | Immunovia Publ vs. Camurus 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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