Correlation Between Oncopeptides and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Fluoguide 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 Fluoguide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Fluoguide AS, you can compare the effects of market volatilities on Oncopeptides and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Fluoguide.
Diversification Opportunities for Oncopeptides and Fluoguide
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oncopeptides and Fluoguide is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Oncopeptides i.e., Oncopeptides and Fluoguide go up and down completely randomly.
Pair Corralation between Oncopeptides and Fluoguide
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Fluoguide. But the stock apears to be less risky and, when comparing its historical volatility, Oncopeptides AB is 2.4 times less risky than Fluoguide. The stock trades about -0.15 of its potential returns per unit of risk. The Fluoguide AS is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,550 in Fluoguide AS on October 23, 2024 and sell it today you would earn a total of 1,390 from holding Fluoguide AS or generate 39.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. Fluoguide AS
Performance |
| Timeline |
| Oncopeptides AB |
| Fluoguide AS |
Oncopeptides and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Fluoguide
The main advantage of trading using opposite Oncopeptides and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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