Correlation Between Saniona AB and BioArctic
Can any of the company-specific risk be diversified away by investing in both Saniona AB and BioArctic 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 BioArctic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and BioArctic AB, you can compare the effects of market volatilities on Saniona AB and BioArctic 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 BioArctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and BioArctic.
Diversification Opportunities for Saniona AB and BioArctic
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saniona and BioArctic is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and BioArctic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioArctic 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 BioArctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioArctic AB has no effect on the direction of Saniona AB i.e., Saniona AB and BioArctic go up and down completely randomly.
Pair Corralation between Saniona AB and BioArctic
Assuming the 90 days trading horizon Saniona AB is expected to generate 3.09 times more return on investment than BioArctic. However, Saniona AB is 3.09 times more volatile than BioArctic AB. It trades about 0.2 of its potential returns per unit of risk. BioArctic AB is currently generating about 0.2 per unit of risk. If you would invest 397.00 in Saniona AB on September 1, 2024 and sell it today you would earn a total of 318.00 from holding Saniona AB or generate 80.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saniona AB vs. BioArctic AB
Performance |
| Timeline |
| Saniona AB |
| BioArctic AB |
Saniona AB and BioArctic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and BioArctic
The main advantage of trading using opposite Saniona AB and BioArctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, BioArctic 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 BioArctic will offset losses from the drop in BioArctic's long position.| Saniona AB vs. Cantargia AB | Saniona AB vs. BioArctic AB | Saniona AB vs. Oncopeptides AB | Saniona AB vs. Hansa Biopharma AB |
| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |