Correlation Between Immunovia Publ and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and Clinical Laserthermia 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 Clinical Laserthermia 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 Clinical Laserthermia Systems, you can compare the effects of market volatilities on Immunovia Publ and Clinical Laserthermia 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 Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Clinical Laserthermia.
Diversification Opportunities for Immunovia Publ and Clinical Laserthermia
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Immunovia and Clinical is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia 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 Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Immunovia Publ and Clinical Laserthermia
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 1.07 times more return on investment than Clinical Laserthermia. However, Immunovia Publ is 1.07 times more volatile than Clinical Laserthermia Systems. It trades about 0.24 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.18 per unit of risk. If you would invest 63.00 in Immunovia publ AB on September 4, 2024 and sell it today you would earn a total of 25.00 from holding Immunovia publ AB or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovia publ AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Immunovia publ AB |
| Clinical Laserthermia |
Immunovia Publ and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovia Publ and Clinical Laserthermia
The main advantage of trading using opposite Immunovia Publ and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
| Clinical Laserthermia vs. Cantargia AB | Clinical Laserthermia vs. Episurf Medical AB | Clinical Laserthermia vs. Karolinska Development AB | Clinical Laserthermia vs. Acarix AS |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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