Correlation Between Kancera AB and Modelon AB
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By analyzing existing cross correlation between Kancera AB and Modelon AB Cl, you can compare the effects of market volatilities on Kancera AB and Modelon 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 Kancera AB with a short position of Modelon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Modelon AB.
Diversification Opportunities for Kancera AB and Modelon AB
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kancera and Modelon is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Modelon AB Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modelon AB Cl 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 Modelon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modelon AB Cl has no effect on the direction of Kancera AB i.e., Kancera AB and Modelon AB go up and down completely randomly.
Pair Corralation between Kancera AB and Modelon AB
Assuming the 90 days trading horizon Kancera AB is expected to generate 1.74 times more return on investment than Modelon AB. However, Kancera AB is 1.74 times more volatile than Modelon AB Cl. It trades about 0.01 of its potential returns per unit of risk. Modelon AB Cl is currently generating about 0.0 per unit of risk. If you would invest 215.00 in Kancera AB on September 4, 2024 and sell it today you would lose (106.00) from holding Kancera AB or give up 49.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kancera AB vs. Modelon AB Cl
Performance |
| Timeline |
| Kancera AB |
| Modelon AB Cl |
Kancera AB and Modelon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Modelon AB
The main advantage of trading using opposite Kancera AB and Modelon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Modelon 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 Modelon AB will offset losses from the drop in Modelon AB'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 |
| Modelon AB vs. Greater Than AB | Modelon AB vs. FormPipe Software AB | Modelon AB vs. MOBA Network publ | Modelon AB vs. Exsitec Holding 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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