Correlation Between Oncopeptides and SenzaGen
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and SenzaGen 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 SenzaGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and SenzaGen AB, you can compare the effects of market volatilities on Oncopeptides and SenzaGen 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 SenzaGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and SenzaGen.
Diversification Opportunities for Oncopeptides and SenzaGen
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oncopeptides and SenzaGen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and SenzaGen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenzaGen 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 SenzaGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenzaGen AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and SenzaGen go up and down completely randomly.
Pair Corralation between Oncopeptides and SenzaGen
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the SenzaGen. In addition to that, Oncopeptides is 1.41 times more volatile than SenzaGen AB. It trades about -0.05 of its total potential returns per unit of risk. SenzaGen AB is currently generating about -0.01 per unit of volatility. If you would invest 1,270 in SenzaGen AB on September 3, 2024 and sell it today you would lose (575.00) from holding SenzaGen AB or give up 45.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. SenzaGen AB
Performance |
| Timeline |
| Oncopeptides AB |
| SenzaGen AB |
Oncopeptides and SenzaGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and SenzaGen
The main advantage of trading using opposite Oncopeptides and SenzaGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, SenzaGen 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 SenzaGen will offset losses from the drop in SenzaGen's long position.| Oncopeptides vs. BioInvent International AB | Oncopeptides vs. Alligator Bioscience AB | Oncopeptides vs. Swedish Orphan Biovitrum | Oncopeptides vs. Anoto Group AB |
| SenzaGen vs. Simris Alg AB | SenzaGen vs. Immunovia publ AB | SenzaGen vs. Sedana Medical AB | SenzaGen vs. KABE Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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