Correlation Between Polygiene and Enzymatica Publ
Can any of the company-specific risk be diversified away by investing in both Polygiene and Enzymatica Publ 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 Polygiene and Enzymatica Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polygiene AB and Enzymatica publ AB, you can compare the effects of market volatilities on Polygiene and Enzymatica Publ 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 Polygiene with a short position of Enzymatica Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygiene and Enzymatica Publ.
Diversification Opportunities for Polygiene and Enzymatica Publ
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polygiene and Enzymatica is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Polygiene AB and Enzymatica publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enzymatica publ AB and Polygiene 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 Polygiene AB are associated (or correlated) with Enzymatica Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enzymatica publ AB has no effect on the direction of Polygiene i.e., Polygiene and Enzymatica Publ go up and down completely randomly.
Pair Corralation between Polygiene and Enzymatica Publ
Assuming the 90 days trading horizon Polygiene AB is expected to generate 1.75 times more return on investment than Enzymatica Publ. However, Polygiene is 1.75 times more volatile than Enzymatica publ AB. It trades about 0.19 of its potential returns per unit of risk. Enzymatica publ AB is currently generating about -0.01 per unit of risk. If you would invest 1,075 in Polygiene AB on August 30, 2024 and sell it today you would earn a total of 215.00 from holding Polygiene AB or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polygiene AB vs. Enzymatica publ AB
Performance |
| Timeline |
| Polygiene AB |
| Enzymatica publ AB |
Polygiene and Enzymatica Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polygiene and Enzymatica Publ
The main advantage of trading using opposite Polygiene and Enzymatica Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygiene position performs unexpectedly, Enzymatica Publ 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 Enzymatica Publ will offset losses from the drop in Enzymatica Publ's long position.| Polygiene vs. G5 Entertainment publ | Polygiene vs. Nexam Chemical Holding | Polygiene vs. Swedencare publ AB | Polygiene vs. Genovis AB |
| Enzymatica Publ vs. Oncopeptides AB | Enzymatica Publ vs. Diamyd Medical AB | Enzymatica Publ vs. Kancera AB | Enzymatica Publ vs. Bonesupport Holding 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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