Correlation Between Oncopeptides and Gapwaves
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Gapwaves 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 Gapwaves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Gapwaves AB Series, you can compare the effects of market volatilities on Oncopeptides and Gapwaves 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 Gapwaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Gapwaves.
Diversification Opportunities for Oncopeptides and Gapwaves
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oncopeptides and Gapwaves is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Gapwaves AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gapwaves AB Series 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 Gapwaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gapwaves AB Series has no effect on the direction of Oncopeptides i.e., Oncopeptides and Gapwaves go up and down completely randomly.
Pair Corralation between Oncopeptides and Gapwaves
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Gapwaves. In addition to that, Oncopeptides is 2.17 times more volatile than Gapwaves AB Series. It trades about -0.07 of its total potential returns per unit of risk. Gapwaves AB Series is currently generating about -0.04 per unit of volatility. If you would invest 1,966 in Gapwaves AB Series on September 14, 2024 and sell it today you would lose (646.00) from holding Gapwaves AB Series or give up 32.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Oncopeptides AB vs. Gapwaves AB Series
Performance |
| Timeline |
| Oncopeptides AB |
| Gapwaves AB Series |
Oncopeptides and Gapwaves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Gapwaves
The main advantage of trading using opposite Oncopeptides and Gapwaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Gapwaves 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 Gapwaves will offset losses from the drop in Gapwaves' long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Gapwaves vs. Goodbye Kansas Group | Gapwaves vs. Enersize Oy | Gapwaves vs. SaltX Technology Holding | Gapwaves 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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