Correlation Between Oncopeptides and Saniona AB
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Saniona AB 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 Saniona AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Saniona AB, you can compare the effects of market volatilities on Oncopeptides and Saniona AB 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 Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Saniona AB.
Diversification Opportunities for Oncopeptides and Saniona AB
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oncopeptides and Saniona is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona 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 Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and Saniona AB go up and down completely randomly.
Pair Corralation between Oncopeptides and Saniona AB
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, Oncopeptides AB is 1.34 times less risky than Saniona AB. The stock trades about -0.06 of its potential returns per unit of risk. The Saniona AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Saniona AB on November 3, 2024 and sell it today you would earn a total of 541.00 from holding Saniona AB or generate 231.2% 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. Saniona AB
Performance |
| Timeline |
| Oncopeptides AB |
| Saniona AB |
Oncopeptides and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Saniona AB
The main advantage of trading using opposite Oncopeptides and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Saniona AB 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 Saniona AB will offset losses from the drop in Saniona AB's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Saniona AB vs. GomSpace Group AB | Saniona AB vs. Hansa Biopharma AB | Saniona AB vs. Zealand Pharma AS | Saniona AB vs. BioInvent International 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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