Correlation Between Lipigon Pharmaceuticals and Simris Alg
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By analyzing existing cross correlation between Lipigon Pharmaceuticals AB and Simris Alg AB, you can compare the effects of market volatilities on Lipigon Pharmaceuticals and Simris Alg 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 Lipigon Pharmaceuticals with a short position of Simris Alg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipigon Pharmaceuticals and Simris Alg.
Diversification Opportunities for Lipigon Pharmaceuticals and Simris Alg
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lipigon and Simris is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lipigon Pharmaceuticals AB and Simris Alg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simris Alg AB and Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals AB are associated (or correlated) with Simris Alg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simris Alg AB has no effect on the direction of Lipigon Pharmaceuticals i.e., Lipigon Pharmaceuticals and Simris Alg go up and down completely randomly.
Pair Corralation between Lipigon Pharmaceuticals and Simris Alg
Assuming the 90 days trading horizon Lipigon Pharmaceuticals AB is expected to under-perform the Simris Alg. In addition to that, Lipigon Pharmaceuticals is 1.02 times more volatile than Simris Alg AB. It trades about -0.02 of its total potential returns per unit of risk. Simris Alg AB is currently generating about -0.01 per unit of volatility. If you would invest 30.00 in Simris Alg AB on September 4, 2024 and sell it today you would lose (22.28) from holding Simris Alg AB or give up 74.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipigon Pharmaceuticals AB vs. Simris Alg AB
Performance |
| Timeline |
| Lipigon Pharmaceuticals |
| Simris Alg AB |
Lipigon Pharmaceuticals and Simris Alg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipigon Pharmaceuticals and Simris Alg
The main advantage of trading using opposite Lipigon Pharmaceuticals and Simris Alg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipigon Pharmaceuticals position performs unexpectedly, Simris Alg 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 Simris Alg will offset losses from the drop in Simris Alg's long position.| Lipigon Pharmaceuticals vs. Sprint Bioscience AB | Lipigon Pharmaceuticals vs. BioArctic AB | Lipigon Pharmaceuticals vs. Veg of Lund | Lipigon Pharmaceuticals vs. Ascelia Pharma AB |
| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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