Correlation Between Investor and Saniona AB
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By analyzing existing cross correlation between Investor AB ser and Saniona AB TO, you can compare the effects of market volatilities on Investor and Saniona 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 Investor with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investor and Saniona AB.
Diversification Opportunities for Investor and Saniona AB
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investor and Saniona is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Investor AB ser and Saniona AB TO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB TO and Investor 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 Investor AB ser are associated (or correlated) with Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB TO has no effect on the direction of Investor i.e., Investor and Saniona AB go up and down completely randomly.
Pair Corralation between Investor and Saniona AB
Assuming the 90 days trading horizon Investor is expected to generate 15.37 times less return on investment than Saniona AB. But when comparing it to its historical volatility, Investor AB ser is 19.5 times less risky than Saniona AB. It trades about 0.15 of its potential returns per unit of risk. Saniona AB TO is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Saniona AB TO on September 24, 2024 and sell it today you would earn a total of 153.00 from holding Saniona AB TO or generate 364.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.55% |
| Values | Daily Returns |
Investor AB ser vs. Saniona AB TO
Performance |
| Timeline |
| Investor AB ser |
| Saniona AB TO |
Investor and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investor and Saniona AB
The main advantage of trading using opposite Investor and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investor position performs unexpectedly, Saniona 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 Saniona AB will offset losses from the drop in Saniona AB's long position.| Investor vs. Kinnevik Investment AB | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Swedbank AB |
| Saniona AB vs. AstraZeneca PLC | Saniona AB vs. Investor AB ser | Saniona AB vs. Investor AB ser | Saniona AB vs. Atlas Copco 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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