Correlation Between Probi AB and Cantargia
Can any of the company-specific risk be diversified away by investing in both Probi AB and Cantargia 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 Probi AB and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Probi AB and Cantargia AB, you can compare the effects of market volatilities on Probi AB and Cantargia 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 Probi AB with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Probi AB and Cantargia.
Diversification Opportunities for Probi AB and Cantargia
Pay attention - limited upside
The 3 months correlation between Probi and Cantargia is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Probi AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Probi AB 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 Probi AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Probi AB i.e., Probi AB and Cantargia go up and down completely randomly.
Pair Corralation between Probi AB and Cantargia
Assuming the 90 days trading horizon Probi AB is expected to generate 0.1 times more return on investment than Cantargia. However, Probi AB is 10.33 times less risky than Cantargia. It trades about 0.06 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.06 per unit of risk. If you would invest 34,800 in Probi AB on October 20, 2024 and sell it today you would earn a total of 100.00 from holding Probi AB or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Probi AB vs. Cantargia AB
Performance |
| Timeline |
| Probi AB |
| Cantargia AB |
Probi AB and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Probi AB and Cantargia
The main advantage of trading using opposite Probi AB and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Probi AB position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Probi AB vs. Mendus AB | Probi AB vs. Cantargia AB | Probi AB vs. BioInvent International AB | Probi AB vs. Isofol Medical AB |
| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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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