Correlation Between Saniona AB and Abliva AB
Can any of the company-specific risk be diversified away by investing in both Saniona AB and Abliva AB 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 Saniona AB and Abliva AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and Abliva AB, you can compare the effects of market volatilities on Saniona AB and Abliva AB 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 Saniona AB with a short position of Abliva AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Abliva AB.
Diversification Opportunities for Saniona AB and Abliva AB
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saniona and Abliva is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and Abliva AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abliva AB and Saniona 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 Saniona AB are associated (or correlated) with Abliva AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abliva AB has no effect on the direction of Saniona AB i.e., Saniona AB and Abliva AB go up and down completely randomly.
Pair Corralation between Saniona AB and Abliva AB
Assuming the 90 days trading horizon Saniona AB is expected to under-perform the Abliva AB. In addition to that, Saniona AB is 3.76 times more volatile than Abliva AB. It trades about -0.16 of its total potential returns per unit of risk. Abliva AB is currently generating about 0.19 per unit of volatility. If you would invest 42.00 in Abliva AB on October 30, 2024 and sell it today you would earn a total of 2.00 from holding Abliva AB or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Saniona AB vs. Abliva AB
Performance |
| Timeline |
| Saniona AB |
| Abliva AB |
Saniona AB and Abliva AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and Abliva AB
The main advantage of trading using opposite Saniona AB and Abliva AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, Abliva AB 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 Abliva AB will offset losses from the drop in Abliva AB's long position.| Saniona AB vs. Vitrolife AB | Saniona AB vs. Biotage AB | Saniona AB vs. Sectra AB | Saniona AB vs. BioGaia AB |
| Abliva AB vs. Cantargia AB | Abliva AB vs. Mendus AB | Abliva AB vs. Alligator Bioscience AB | Abliva AB vs. Oncopeptides 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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