Correlation Between Saniona AB and Hansa Biopharma
Can any of the company-specific risk be diversified away by investing in both Saniona AB and Hansa Biopharma 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 Hansa Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and Hansa Biopharma AB, you can compare the effects of market volatilities on Saniona AB and Hansa Biopharma 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 Hansa Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Hansa Biopharma.
Diversification Opportunities for Saniona AB and Hansa Biopharma
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saniona and Hansa is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma 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 Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of Saniona AB i.e., Saniona AB and Hansa Biopharma go up and down completely randomly.
Pair Corralation between Saniona AB and Hansa Biopharma
Assuming the 90 days trading horizon Saniona AB is expected to generate 3.5 times more return on investment than Hansa Biopharma. However, Saniona AB is 3.5 times more volatile than Hansa Biopharma AB. It trades about -0.05 of its potential returns per unit of risk. Hansa Biopharma AB is currently generating about -0.27 per unit of risk. If you would invest 411.00 in Saniona AB on August 29, 2024 and sell it today you would lose (101.00) from holding Saniona AB or give up 24.57% 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. Hansa Biopharma AB
Performance |
| Timeline |
| Saniona AB |
| Hansa Biopharma AB |
Saniona AB and Hansa Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and Hansa Biopharma
The main advantage of trading using opposite Saniona AB and Hansa Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, Hansa Biopharma 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 Hansa Biopharma will offset losses from the drop in Hansa Biopharma'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 |
| Hansa Biopharma vs. Oncopeptides AB | Hansa Biopharma vs. ExpreS2ion Biotech Holding | Hansa Biopharma vs. BioInvent International AB | Hansa Biopharma vs. Zealand Pharma 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |