Correlation Between Oncopeptides and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and AcadeMedia 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 Oncopeptides and AcadeMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and AcadeMedia AB, you can compare the effects of market volatilities on Oncopeptides and AcadeMedia 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 Oncopeptides with a short position of AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and AcadeMedia.
Diversification Opportunities for Oncopeptides and AcadeMedia
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oncopeptides and AcadeMedia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and Oncopeptides 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 Oncopeptides AB are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and AcadeMedia go up and down completely randomly.
Pair Corralation between Oncopeptides and AcadeMedia
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the AcadeMedia. In addition to that, Oncopeptides is 3.48 times more volatile than AcadeMedia AB. It trades about -0.05 of its total potential returns per unit of risk. AcadeMedia AB is currently generating about 0.06 per unit of volatility. If you would invest 4,059 in AcadeMedia AB on August 29, 2024 and sell it today you would earn a total of 2,051 from holding AcadeMedia AB or generate 50.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. AcadeMedia AB
Performance |
| Timeline |
| Oncopeptides AB |
| AcadeMedia AB |
Oncopeptides and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and AcadeMedia
The main advantage of trading using opposite Oncopeptides and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| AcadeMedia vs. Inwido AB | AcadeMedia vs. Alimak Hek Group | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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