Correlation Between Kancera AB and Sprint Bioscience
Can any of the company-specific risk be diversified away by investing in both Kancera AB and Sprint Bioscience 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 Sprint Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Sprint Bioscience AB, you can compare the effects of market volatilities on Kancera AB and Sprint Bioscience 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 Sprint Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Sprint Bioscience.
Diversification Opportunities for Kancera AB and Sprint Bioscience
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kancera and Sprint is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Sprint Bioscience AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprint Bioscience 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 Sprint Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint Bioscience has no effect on the direction of Kancera AB i.e., Kancera AB and Sprint Bioscience go up and down completely randomly.
Pair Corralation between Kancera AB and Sprint Bioscience
Assuming the 90 days trading horizon Kancera AB is expected to under-perform the Sprint Bioscience. But the stock apears to be less risky and, when comparing its historical volatility, Kancera AB is 2.14 times less risky than Sprint Bioscience. The stock trades about -0.01 of its potential returns per unit of risk. The Sprint Bioscience AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 63.00 in Sprint Bioscience AB on September 3, 2024 and sell it today you would earn a total of 119.00 from holding Sprint Bioscience AB or generate 188.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. Sprint Bioscience AB
Performance |
| Timeline |
| Kancera AB |
| Sprint Bioscience |
Kancera AB and Sprint Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Sprint Bioscience
The main advantage of trading using opposite Kancera AB and Sprint Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Sprint Bioscience 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 Sprint Bioscience will offset losses from the drop in Sprint Bioscience'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 |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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