Correlation Between Oncopeptides and Alcadon Group
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Alcadon Group 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 Alcadon Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Alcadon Group AB, you can compare the effects of market volatilities on Oncopeptides and Alcadon Group 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 Alcadon Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Alcadon Group.
Diversification Opportunities for Oncopeptides and Alcadon Group
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oncopeptides and Alcadon is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Alcadon Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcadon Group 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 Alcadon Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcadon Group AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and Alcadon Group go up and down completely randomly.
Pair Corralation between Oncopeptides and Alcadon Group
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Alcadon Group. In addition to that, Oncopeptides is 1.42 times more volatile than Alcadon Group AB. It trades about -0.12 of its total potential returns per unit of risk. Alcadon Group AB is currently generating about -0.04 per unit of volatility. If you would invest 3,360 in Alcadon Group AB on August 30, 2024 and sell it today you would lose (580.00) from holding Alcadon Group AB or give up 17.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. Alcadon Group AB
Performance |
| Timeline |
| Oncopeptides AB |
| Alcadon Group AB |
Oncopeptides and Alcadon Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Alcadon Group
The main advantage of trading using opposite Oncopeptides and Alcadon Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Alcadon Group 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 Alcadon Group will offset losses from the drop in Alcadon Group's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Alcadon Group vs. Goodbye Kansas Group | Alcadon Group vs. Enersize Oy | Alcadon Group vs. SaltX Technology Holding | Alcadon Group vs. Oncopeptides 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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