Correlation Between Kancera AB and Gabather
Can any of the company-specific risk be diversified away by investing in both Kancera AB and Gabather 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 Kancera AB and Gabather into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Gabather AB, you can compare the effects of market volatilities on Kancera AB and Gabather 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 Kancera AB with a short position of Gabather. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Gabather.
Diversification Opportunities for Kancera AB and Gabather
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kancera and Gabather is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Gabather AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabather AB and Kancera 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 Kancera AB are associated (or correlated) with Gabather. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabather AB has no effect on the direction of Kancera AB i.e., Kancera AB and Gabather go up and down completely randomly.
Pair Corralation between Kancera AB and Gabather
Assuming the 90 days trading horizon Kancera AB is expected to generate 0.71 times more return on investment than Gabather. However, Kancera AB is 1.41 times less risky than Gabather. It trades about -0.01 of its potential returns per unit of risk. Gabather AB is currently generating about -0.01 per unit of risk. If you would invest 343.00 in Kancera AB on September 1, 2024 and sell it today you would lose (246.00) from holding Kancera AB or give up 71.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Kancera AB vs. Gabather AB
Performance |
| Timeline |
| Kancera AB |
| Gabather AB |
Kancera AB and Gabather Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Gabather
The main advantage of trading using opposite Kancera AB and Gabather positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Gabather 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 Gabather will offset losses from the drop in Gabather's long position.| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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