Correlation Between PCI Biotech and Pexip Holding
Can any of the company-specific risk be diversified away by investing in both PCI Biotech and Pexip Holding 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 Pexip Holding 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 Pexip Holding ASA, you can compare the effects of market volatilities on PCI Biotech and Pexip Holding 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 Pexip Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCI Biotech and Pexip Holding.
Diversification Opportunities for PCI Biotech and Pexip Holding
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PCI and Pexip is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PCI Biotech Holding and Pexip Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pexip Holding ASA 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 Pexip Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pexip Holding ASA has no effect on the direction of PCI Biotech i.e., PCI Biotech and Pexip Holding go up and down completely randomly.
Pair Corralation between PCI Biotech and Pexip Holding
Assuming the 90 days trading horizon PCI Biotech Holding is expected to generate 5.14 times more return on investment than Pexip Holding. However, PCI Biotech is 5.14 times more volatile than Pexip Holding ASA. It trades about 0.03 of its potential returns per unit of risk. Pexip Holding ASA is currently generating about 0.12 per unit of risk. If you would invest 156.00 in PCI Biotech Holding on September 1, 2024 and sell it today you would lose (6.00) from holding PCI Biotech Holding or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PCI Biotech Holding vs. Pexip Holding ASA
Performance |
| Timeline |
| PCI Biotech Holding |
| Pexip Holding ASA |
PCI Biotech and Pexip Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCI Biotech and Pexip Holding
The main advantage of trading using opposite PCI Biotech and Pexip Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCI Biotech position performs unexpectedly, Pexip Holding 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 Pexip Holding will offset losses from the drop in Pexip Holding's long position.| PCI Biotech vs. DnB ASA | PCI Biotech vs. Sparebank 1 SMN | PCI Biotech vs. Norsk Hydro ASA | PCI Biotech vs. Equinor ASA |
| Pexip Holding vs. Elliptic Laboratories AS | Pexip Holding vs. Huddlestock Fintech As | Pexip Holding vs. Elkem ASA | Pexip Holding vs. Integrated Wind Solutions |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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