Correlation Between PCI Biotech and CodeLab Capital
Can any of the company-specific risk be diversified away by investing in both PCI Biotech and CodeLab Capital 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 PCI Biotech and CodeLab Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PCI Biotech Holding and CodeLab Capital AS, you can compare the effects of market volatilities on PCI Biotech and CodeLab Capital 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 PCI Biotech with a short position of CodeLab Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCI Biotech and CodeLab Capital.
Diversification Opportunities for PCI Biotech and CodeLab Capital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PCI and CodeLab is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding PCI Biotech Holding and CodeLab Capital AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CodeLab Capital AS and PCI Biotech 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 PCI Biotech Holding are associated (or correlated) with CodeLab Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CodeLab Capital AS has no effect on the direction of PCI Biotech i.e., PCI Biotech and CodeLab Capital go up and down completely randomly.
Pair Corralation between PCI Biotech and CodeLab Capital
Assuming the 90 days trading horizon PCI Biotech Holding is expected to under-perform the CodeLab Capital. But the stock apears to be less risky and, when comparing its historical volatility, PCI Biotech Holding is 1.17 times less risky than CodeLab Capital. The stock trades about -0.05 of its potential returns per unit of risk. The CodeLab Capital AS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 335.00 in CodeLab Capital AS on October 20, 2025 and sell it today you would lose (55.00) from holding CodeLab Capital AS or give up 16.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PCI Biotech Holding vs. CodeLab Capital AS
Performance |
| Timeline |
| PCI Biotech Holding |
| CodeLab Capital AS |
PCI Biotech and CodeLab Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCI Biotech and CodeLab Capital
The main advantage of trading using opposite PCI Biotech and CodeLab Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCI Biotech position performs unexpectedly, CodeLab Capital 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 CodeLab Capital will offset losses from the drop in CodeLab Capital's long position.| PCI Biotech vs. Kongsberg Automotive Holding | PCI Biotech vs. Napatech AS | PCI Biotech vs. SD Standard Drilling | PCI Biotech vs. Grieg Seafood ASA |
| CodeLab Capital vs. Sea1 Offshore | CodeLab Capital vs. SD Standard Drilling | CodeLab Capital vs. Tinde Sparebank | CodeLab Capital vs. Skue Sparebank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |