Correlation Between Saniona AB and ExpreS2ion Biotech
Can any of the company-specific risk be diversified away by investing in both Saniona AB and ExpreS2ion Biotech 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 ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on Saniona AB and ExpreS2ion Biotech 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 ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and ExpreS2ion Biotech.
Diversification Opportunities for Saniona AB and ExpreS2ion Biotech
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saniona and ExpreS2ion is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech 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 ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of Saniona AB i.e., Saniona AB and ExpreS2ion Biotech go up and down completely randomly.
Pair Corralation between Saniona AB and ExpreS2ion Biotech
Assuming the 90 days trading horizon Saniona AB is expected to generate 1.04 times more return on investment than ExpreS2ion Biotech. However, Saniona AB is 1.04 times more volatile than ExpreS2ion Biotech Holding. It trades about -0.03 of its potential returns per unit of risk. ExpreS2ion Biotech Holding is currently generating about -0.11 per unit of risk. If you would invest 410.00 in Saniona AB on August 28, 2024 and sell it today you would lose (114.00) from holding Saniona AB or give up 27.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saniona AB vs. ExpreS2ion Biotech Holding
Performance |
| Timeline |
| Saniona AB |
| ExpreS2ion Biotech |
Saniona AB and ExpreS2ion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and ExpreS2ion Biotech
The main advantage of trading using opposite Saniona AB and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, ExpreS2ion Biotech 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech'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 |
| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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