Correlation Between NextCell Pharma and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both NextCell Pharma and Ascelia Pharma 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 NextCell Pharma and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextCell Pharma AB and Ascelia Pharma AB, you can compare the effects of market volatilities on NextCell Pharma and Ascelia Pharma 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 NextCell Pharma with a short position of Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextCell Pharma and Ascelia Pharma.
Diversification Opportunities for NextCell Pharma and Ascelia Pharma
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NextCell and Ascelia is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding NextCell Pharma AB and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB and NextCell 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 NextCell Pharma AB are associated (or correlated) with Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of NextCell Pharma i.e., NextCell Pharma and Ascelia Pharma go up and down completely randomly.
Pair Corralation between NextCell Pharma and Ascelia Pharma
Assuming the 90 days trading horizon NextCell Pharma AB is expected to generate 2.05 times more return on investment than Ascelia Pharma. However, NextCell Pharma is 2.05 times more volatile than Ascelia Pharma AB. It trades about 0.18 of its potential returns per unit of risk. Ascelia Pharma AB is currently generating about 0.02 per unit of risk. If you would invest 180.00 in NextCell Pharma AB on November 2, 2024 and sell it today you would earn a total of 112.00 from holding NextCell Pharma AB or generate 62.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NextCell Pharma AB vs. Ascelia Pharma AB
Performance |
| Timeline |
| NextCell Pharma AB |
| Ascelia Pharma AB |
NextCell Pharma and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextCell Pharma and Ascelia Pharma
The main advantage of trading using opposite NextCell Pharma and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextCell Pharma position performs unexpectedly, Ascelia Pharma 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 Ascelia Pharma will offset losses from the drop in Ascelia Pharma's long position.| NextCell Pharma vs. Diamyd Medical AB | NextCell Pharma vs. Mendus AB | NextCell Pharma vs. Vicore Pharma Holding | NextCell Pharma vs. Immunovia publ AB |
| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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