Correlation Between Mendus AB and Abliva AB
Can any of the company-specific risk be diversified away by investing in both Mendus AB and Abliva 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 Mendus AB and Abliva AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mendus AB and Abliva AB, you can compare the effects of market volatilities on Mendus AB and Abliva 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 Mendus AB with a short position of Abliva AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mendus AB and Abliva AB.
Diversification Opportunities for Mendus AB and Abliva AB
Very good diversification
The 3 months correlation between Mendus and Abliva is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mendus AB and Abliva AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abliva AB and Mendus AB 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 Mendus AB are associated (or correlated) with Abliva AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abliva AB has no effect on the direction of Mendus AB i.e., Mendus AB and Abliva AB go up and down completely randomly.
Pair Corralation between Mendus AB and Abliva AB
Assuming the 90 days trading horizon Mendus AB is expected to under-perform the Abliva AB. But the stock apears to be less risky and, when comparing its historical volatility, Mendus AB is 4.05 times less risky than Abliva AB. The stock trades about -0.02 of its potential returns per unit of risk. The Abliva AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Abliva AB on October 16, 2024 and sell it today you would earn a total of 19.00 from holding Abliva AB or generate 79.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Mendus AB vs. Abliva AB
Performance |
| Timeline |
| Mendus AB |
| Abliva AB |
Mendus AB and Abliva AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mendus AB and Abliva AB
The main advantage of trading using opposite Mendus AB and Abliva AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mendus AB position performs unexpectedly, Abliva 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 Abliva AB will offset losses from the drop in Abliva AB's long position.| Mendus AB vs. Cantargia AB | Mendus AB vs. BioInvent International AB | Mendus AB vs. Alligator Bioscience AB | Mendus AB vs. Moberg Pharma AB |
| Abliva AB vs. Cantargia AB | Abliva AB vs. Mendus AB | Abliva AB vs. Alligator Bioscience AB | Abliva AB vs. Oncopeptides 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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