Correlation Between Moberg Pharma and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Moberg Pharma and Oncopeptides 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 Moberg Pharma and Oncopeptides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moberg Pharma AB and Oncopeptides AB, you can compare the effects of market volatilities on Moberg Pharma and Oncopeptides 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 Moberg Pharma with a short position of Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moberg Pharma and Oncopeptides.
Diversification Opportunities for Moberg Pharma and Oncopeptides
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Moberg and Oncopeptides is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Moberg Pharma AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides AB and Moberg Pharma 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 Moberg Pharma AB are associated (or correlated) with Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Moberg Pharma i.e., Moberg Pharma and Oncopeptides go up and down completely randomly.
Pair Corralation between Moberg Pharma and Oncopeptides
Assuming the 90 days trading horizon Moberg Pharma AB is expected to generate 1.51 times more return on investment than Oncopeptides. However, Moberg Pharma is 1.51 times more volatile than Oncopeptides AB. It trades about 0.05 of its potential returns per unit of risk. Oncopeptides AB is currently generating about -0.05 per unit of risk. If you would invest 1,650 in Moberg Pharma AB on August 29, 2024 and sell it today you would earn a total of 161.00 from holding Moberg Pharma AB or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moberg Pharma AB vs. Oncopeptides AB
Performance |
| Timeline |
| Moberg Pharma AB |
| Oncopeptides AB |
Moberg Pharma and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moberg Pharma and Oncopeptides
The main advantage of trading using opposite Moberg Pharma and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moberg Pharma position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| Moberg Pharma vs. Enzymatica publ AB | Moberg Pharma vs. KABE Group AB | Moberg Pharma vs. IAR Systems Group | Moberg Pharma vs. Mekonomen AB |
| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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