Correlation Between Saniona AB and Scandion Oncology
Can any of the company-specific risk be diversified away by investing in both Saniona AB and Scandion Oncology 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 Scandion Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and Scandion Oncology AS, you can compare the effects of market volatilities on Saniona AB and Scandion Oncology 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 Scandion Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Scandion Oncology.
Diversification Opportunities for Saniona AB and Scandion Oncology
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saniona and Scandion is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and Scandion Oncology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandion Oncology 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 Scandion Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandion Oncology has no effect on the direction of Saniona AB i.e., Saniona AB and Scandion Oncology go up and down completely randomly.
Pair Corralation between Saniona AB and Scandion Oncology
Assuming the 90 days trading horizon Saniona AB is expected to generate 3.43 times more return on investment than Scandion Oncology. However, Saniona AB is 3.43 times more volatile than Scandion Oncology AS. It trades about 0.21 of its potential returns per unit of risk. Scandion Oncology AS is currently generating about -0.33 per unit of risk. If you would invest 385.00 in Saniona AB on August 31, 2024 and sell it today you would earn a total of 315.00 from holding Saniona AB or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saniona AB vs. Scandion Oncology AS
Performance |
| Timeline |
| Saniona AB |
| Scandion Oncology |
Saniona AB and Scandion Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and Scandion Oncology
The main advantage of trading using opposite Saniona AB and Scandion Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, Scandion Oncology 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 Scandion Oncology will offset losses from the drop in Scandion Oncology's long position.| Saniona AB vs. Cantargia AB | Saniona AB vs. BioArctic AB | Saniona AB vs. Oncopeptides AB | Saniona AB vs. Hansa Biopharma AB |
| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Saniona AB | Scandion Oncology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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