Correlation Between Saniona AB and Alligator Bioscience
Can any of the company-specific risk be diversified away by investing in both Saniona AB and Alligator Bioscience 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 Alligator Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and Alligator Bioscience AB, you can compare the effects of market volatilities on Saniona AB and Alligator Bioscience 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 Alligator Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Alligator Bioscience.
Diversification Opportunities for Saniona AB and Alligator Bioscience
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saniona and Alligator is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and Alligator Bioscience AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alligator Bioscience 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 Alligator Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alligator Bioscience has no effect on the direction of Saniona AB i.e., Saniona AB and Alligator Bioscience go up and down completely randomly.
Pair Corralation between Saniona AB and Alligator Bioscience
Assuming the 90 days trading horizon Saniona AB is expected to generate 0.39 times more return on investment than Alligator Bioscience. However, Saniona AB is 2.58 times less risky than Alligator Bioscience. It trades about 0.1 of its potential returns per unit of risk. Alligator Bioscience AB is currently generating about -0.01 per unit of risk. If you would invest 434.00 in Saniona AB on November 2, 2024 and sell it today you would earn a total of 352.00 from holding Saniona AB or generate 81.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saniona AB vs. Alligator Bioscience AB
Performance |
| Timeline |
| Saniona AB |
| Alligator Bioscience |
Saniona AB and Alligator Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and Alligator Bioscience
The main advantage of trading using opposite Saniona AB and Alligator Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, Alligator Bioscience 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 Alligator Bioscience will offset losses from the drop in Alligator Bioscience's long position.| Saniona AB vs. GomSpace Group AB | Saniona AB vs. Hansa Biopharma AB | Saniona AB vs. Zealand Pharma AS | Saniona AB vs. BioInvent International AB |
| Alligator Bioscience vs. Vitrolife AB | Alligator Bioscience vs. Biotage AB | Alligator Bioscience vs. Sectra AB | Alligator Bioscience vs. BioGaia 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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