Correlation Between Oncopeptides and Swedish Orphan
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Swedish Orphan 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 Swedish Orphan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Swedish Orphan Biovitrum, you can compare the effects of market volatilities on Oncopeptides and Swedish Orphan 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 Swedish Orphan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Swedish Orphan.
Diversification Opportunities for Oncopeptides and Swedish Orphan
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oncopeptides and Swedish is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Swedish Orphan Biovitrum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedish Orphan Biovitrum 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 Swedish Orphan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedish Orphan Biovitrum has no effect on the direction of Oncopeptides i.e., Oncopeptides and Swedish Orphan go up and down completely randomly.
Pair Corralation between Oncopeptides and Swedish Orphan
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Swedish Orphan. In addition to that, Oncopeptides is 1.72 times more volatile than Swedish Orphan Biovitrum. It trades about -0.12 of its total potential returns per unit of risk. Swedish Orphan Biovitrum is currently generating about 0.04 per unit of volatility. If you would invest 28,240 in Swedish Orphan Biovitrum on August 29, 2024 and sell it today you would earn a total of 2,540 from holding Swedish Orphan Biovitrum or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. Swedish Orphan Biovitrum
Performance |
| Timeline |
| Oncopeptides AB |
| Swedish Orphan Biovitrum |
Oncopeptides and Swedish Orphan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Swedish Orphan
The main advantage of trading using opposite Oncopeptides and Swedish Orphan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Swedish Orphan 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 Swedish Orphan will offset losses from the drop in Swedish Orphan's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Swedish Orphan vs. Getinge AB ser | Swedish Orphan vs. Elekta AB | Swedish Orphan vs. AB SKF | Swedish Orphan vs. Saab 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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