Correlation Between Mendus AB and Klaria Pharma
Can any of the company-specific risk be diversified away by investing in both Mendus AB and Klaria Pharma 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 Klaria Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mendus AB and Klaria Pharma Holding, you can compare the effects of market volatilities on Mendus AB and Klaria Pharma 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 Klaria Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mendus AB and Klaria Pharma.
Diversification Opportunities for Mendus AB and Klaria Pharma
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mendus and Klaria is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mendus AB and Klaria Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaria Pharma Holding 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 Klaria Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaria Pharma Holding has no effect on the direction of Mendus AB i.e., Mendus AB and Klaria Pharma go up and down completely randomly.
Pair Corralation between Mendus AB and Klaria Pharma
Assuming the 90 days trading horizon Mendus AB is expected to under-perform the Klaria Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Mendus AB is 3.65 times less risky than Klaria Pharma. The stock trades about -0.35 of its potential returns per unit of risk. The Klaria Pharma Holding is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Klaria Pharma Holding on August 29, 2024 and sell it today you would lose (4.00) from holding Klaria Pharma Holding or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mendus AB vs. Klaria Pharma Holding
Performance |
| Timeline |
| Mendus AB |
| Klaria Pharma Holding |
Mendus AB and Klaria Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mendus AB and Klaria Pharma
The main advantage of trading using opposite Mendus AB and Klaria Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mendus AB position performs unexpectedly, Klaria Pharma 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 Klaria Pharma will offset losses from the drop in Klaria Pharma's long position.| Mendus AB vs. Hansa Biopharma AB | Mendus AB vs. Xbrane Biopharma AB | Mendus AB vs. BioArctic AB | Mendus AB vs. Cantargia AB |
| Klaria Pharma vs. Kancera AB | Klaria Pharma vs. Cyxone AB | Klaria Pharma vs. Lidds AB | Klaria Pharma vs. Cantargia 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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