Correlation Between Kancera AB and Probi AB
Can any of the company-specific risk be diversified away by investing in both Kancera AB and Probi AB 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 Probi AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Probi AB, you can compare the effects of market volatilities on Kancera AB and Probi 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 Probi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Probi AB.
Diversification Opportunities for Kancera AB and Probi AB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kancera and Probi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Probi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Probi 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 Probi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Probi AB has no effect on the direction of Kancera AB i.e., Kancera AB and Probi AB go up and down completely randomly.
Pair Corralation between Kancera AB and Probi AB
Assuming the 90 days trading horizon Kancera AB is expected to generate 8.81 times more return on investment than Probi AB. However, Kancera AB is 8.81 times more volatile than Probi AB. It trades about 0.0 of its potential returns per unit of risk. Probi AB is currently generating about -0.11 per unit of risk. If you would invest 108.00 in Kancera AB on November 3, 2024 and sell it today you would lose (2.00) from holding Kancera AB or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. Probi AB
Performance |
| Timeline |
| Kancera AB |
| Probi AB |
Kancera AB and Probi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Probi AB
The main advantage of trading using opposite Kancera AB and Probi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Probi 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 Probi AB will offset losses from the drop in Probi 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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |