Correlation Between Kinnevik Investment and Alligator Bioscience
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By analyzing existing cross correlation between Kinnevik Investment AB and Alligator Bioscience AB, you can compare the effects of market volatilities on Kinnevik Investment and Alligator 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 Kinnevik Investment with a short position of Alligator Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Alligator Bioscience.
Diversification Opportunities for Kinnevik Investment and Alligator Bioscience
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinnevik and Alligator is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Alligator Bioscience AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alligator Bioscience and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Alligator Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alligator Bioscience has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Alligator Bioscience go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Alligator Bioscience
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Alligator Bioscience. But the stock apears to be less risky and, when comparing its historical volatility, Kinnevik Investment AB is 15.91 times less risky than Alligator Bioscience. The stock trades about -0.05 of its potential returns per unit of risk. The Alligator Bioscience AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6.16 in Alligator Bioscience AB on August 29, 2024 and sell it today you would earn a total of 0.24 from holding Alligator Bioscience AB or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Alligator Bioscience AB
Performance |
| Timeline |
| Kinnevik Investment |
| Alligator Bioscience |
Kinnevik Investment and Alligator Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Alligator Bioscience
The main advantage of trading using opposite Kinnevik Investment and Alligator Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Alligator 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 Alligator Bioscience will offset losses from the drop in Alligator Bioscience's long position.| Kinnevik Investment vs. Kinnevik Investment AB | Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. L E Lundbergfretagen |
| Alligator Bioscience vs. Neola Medical AB | Alligator Bioscience vs. Kinnevik Investment AB | Alligator Bioscience vs. Nordic Iron Ore | Alligator Bioscience vs. Filo Mining Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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