Correlation Between Nanologica and Simris Alg
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By analyzing existing cross correlation between Nanologica AB and Simris Alg AB, you can compare the effects of market volatilities on Nanologica 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 Nanologica with a short position of Simris Alg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanologica and Simris Alg.
Diversification Opportunities for Nanologica and Simris Alg
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanologica and Simris is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nanologica 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 Nanologica 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 Nanologica 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 Nanologica i.e., Nanologica and Simris Alg go up and down completely randomly.
Pair Corralation between Nanologica and Simris Alg
Assuming the 90 days trading horizon Nanologica AB is expected to under-perform the Simris Alg. But the stock apears to be less risky and, when comparing its historical volatility, Nanologica AB is 3.49 times less risky than Simris Alg. The stock trades about -0.41 of its potential returns per unit of risk. The Simris Alg AB is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Simris Alg AB on September 3, 2024 and sell it today you would lose (1.44) from holding Simris Alg AB or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanologica AB vs. Simris Alg AB
Performance |
| Timeline |
| Nanologica AB |
| Simris Alg AB |
Nanologica and Simris Alg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanologica and Simris Alg
The main advantage of trading using opposite Nanologica and Simris Alg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanologica 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.| Nanologica vs. Simris Alg AB | Nanologica vs. Immunovia publ AB | Nanologica vs. Sedana Medical AB | Nanologica vs. KABE Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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