Correlation Between Intervacc and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Intervacc 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 Intervacc and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intervacc AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Intervacc 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 Intervacc with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intervacc and Clinical Laserthermia.
Diversification Opportunities for Intervacc and Clinical Laserthermia
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intervacc and Clinical is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intervacc 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 Intervacc 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 Intervacc 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 Intervacc i.e., Intervacc and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Intervacc and Clinical Laserthermia
Assuming the 90 days trading horizon Intervacc AB is expected to under-perform the Clinical Laserthermia. But the stock apears to be less risky and, when comparing its historical volatility, Intervacc AB is 1.28 times less risky than Clinical Laserthermia. The stock trades about -0.05 of its potential returns per unit of risk. The Clinical Laserthermia Systems is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Clinical Laserthermia Systems on August 29, 2024 and sell it today you would lose (43.00) from holding Clinical Laserthermia Systems or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intervacc AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Intervacc AB |
| Clinical Laserthermia |
Intervacc and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intervacc and Clinical Laserthermia
The main advantage of trading using opposite Intervacc and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intervacc 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.| Intervacc vs. Swedencare publ AB | Intervacc vs. Oncopeptides AB | Intervacc vs. Kambi Group PLC | Intervacc vs. Genovis 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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