Correlation Between Oncopeptides and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Surgical Science 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 Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Surgical Science Sweden, you can compare the effects of market volatilities on Oncopeptides and Surgical Science 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 Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Surgical Science.
Diversification Opportunities for Oncopeptides and Surgical Science
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oncopeptides and Surgical is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden 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 Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Oncopeptides i.e., Oncopeptides and Surgical Science go up and down completely randomly.
Pair Corralation between Oncopeptides and Surgical Science
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Surgical Science. In addition to that, Oncopeptides is 1.28 times more volatile than Surgical Science Sweden. It trades about -0.12 of its total potential returns per unit of risk. Surgical Science Sweden is currently generating about 0.14 per unit of volatility. If you would invest 12,690 in Surgical Science Sweden on August 30, 2024 and sell it today you would earn a total of 2,430 from holding Surgical Science Sweden or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. Surgical Science Sweden
Performance |
| Timeline |
| Oncopeptides AB |
| Surgical Science Sweden |
Oncopeptides and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Surgical Science
The main advantage of trading using opposite Oncopeptides and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Surgical Science vs. BICO Group AB | Surgical Science vs. Hexatronic Group AB | Surgical Science vs. Swedencare publ AB | Surgical Science vs. MIPS 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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