Correlation Between Oncopeptides and Lime Technologies
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Lime Technologies 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 Lime Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Lime Technologies AB, you can compare the effects of market volatilities on Oncopeptides and Lime Technologies 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 Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Lime Technologies.
Diversification Opportunities for Oncopeptides and Lime Technologies
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oncopeptides and Lime is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies 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 Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of Oncopeptides i.e., Oncopeptides and Lime Technologies go up and down completely randomly.
Pair Corralation between Oncopeptides and Lime Technologies
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Lime Technologies. In addition to that, Oncopeptides is 1.84 times more volatile than Lime Technologies AB. It trades about -0.16 of its total potential returns per unit of risk. Lime Technologies AB is currently generating about 0.21 per unit of volatility. If you would invest 32,800 in Lime Technologies AB on September 1, 2024 and sell it today you would earn a total of 4,550 from holding Lime Technologies AB or generate 13.87% 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. Lime Technologies AB
Performance |
| Timeline |
| Oncopeptides AB |
| Lime Technologies |
Oncopeptides and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Lime Technologies
The main advantage of trading using opposite Oncopeptides and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Lime Technologies vs. Catena Media plc | Lime Technologies vs. Kambi Group PLC | Lime Technologies vs. Betsson AB | Lime Technologies vs. Invisio Communications 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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