Correlation Between Oncopeptides and Stayble Therapeutics
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Stayble Therapeutics 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 Stayble Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Stayble Therapeutics AB, you can compare the effects of market volatilities on Oncopeptides and Stayble Therapeutics 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 Stayble Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Stayble Therapeutics.
Diversification Opportunities for Oncopeptides and Stayble Therapeutics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oncopeptides and Stayble is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Stayble Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stayble Therapeutics 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 Stayble Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stayble Therapeutics has no effect on the direction of Oncopeptides i.e., Oncopeptides and Stayble Therapeutics go up and down completely randomly.
Pair Corralation between Oncopeptides and Stayble Therapeutics
Assuming the 90 days trading horizon Oncopeptides AB is expected to generate 0.99 times more return on investment than Stayble Therapeutics. However, Oncopeptides AB is 1.01 times less risky than Stayble Therapeutics. It trades about -0.16 of its potential returns per unit of risk. Stayble Therapeutics AB is currently generating about -0.23 per unit of risk. If you would invest 210.00 in Oncopeptides AB on September 3, 2024 and sell it today you would lose (45.00) from holding Oncopeptides AB or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. Stayble Therapeutics AB
Performance |
| Timeline |
| Oncopeptides AB |
| Stayble Therapeutics |
Oncopeptides and Stayble Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Stayble Therapeutics
The main advantage of trading using opposite Oncopeptides and Stayble Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Stayble Therapeutics 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 Stayble Therapeutics will offset losses from the drop in Stayble Therapeutics' long position.| Oncopeptides vs. BioInvent International AB | Oncopeptides vs. Alligator Bioscience AB | Oncopeptides vs. Swedish Orphan Biovitrum | Oncopeptides vs. Anoto Group AB |
| Stayble Therapeutics vs. Simris Alg AB | Stayble Therapeutics vs. Immunovia publ AB | Stayble Therapeutics vs. Sedana Medical AB | Stayble Therapeutics 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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