Correlation Between Oncopeptides and Scibase AB
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Scibase 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 Scibase 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 Scibase AB, you can compare the effects of market volatilities on Oncopeptides and Scibase 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 Scibase AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Scibase AB.
Diversification Opportunities for Oncopeptides and Scibase AB
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oncopeptides and Scibase is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase 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 Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and Scibase AB go up and down completely randomly.
Pair Corralation between Oncopeptides and Scibase AB
Assuming the 90 days trading horizon Oncopeptides AB is expected to generate 0.99 times more return on investment than Scibase AB. However, Oncopeptides AB is 1.01 times less risky than Scibase AB. It trades about -0.05 of its potential returns per unit of risk. Scibase AB is currently generating about -0.06 per unit of risk. If you would invest 1,201 in Oncopeptides AB on September 14, 2024 and sell it today you would lose (1,044) from holding Oncopeptides AB or give up 86.93% 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. Scibase AB
Performance |
| Timeline |
| Oncopeptides AB |
| Scibase AB |
Oncopeptides and Scibase AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Scibase AB
The main advantage of trading using opposite Oncopeptides and Scibase AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Scibase 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 Scibase AB will offset losses from the drop in Scibase AB's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Scibase AB vs. Oncopeptides AB | Scibase AB vs. Hansa Biopharma AB | Scibase AB vs. Cantargia AB | Scibase AB vs. Camurus 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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