Correlation Between Saniona AB and SpectraCure
Can any of the company-specific risk be diversified away by investing in both Saniona AB and SpectraCure 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 SpectraCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and SpectraCure AB, you can compare the effects of market volatilities on Saniona AB and SpectraCure 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 SpectraCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and SpectraCure.
Diversification Opportunities for Saniona AB and SpectraCure
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saniona and SpectraCure is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and SpectraCure AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpectraCure 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 SpectraCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpectraCure AB has no effect on the direction of Saniona AB i.e., Saniona AB and SpectraCure go up and down completely randomly.
Pair Corralation between Saniona AB and SpectraCure
Assuming the 90 days trading horizon Saniona AB is expected to generate 0.92 times more return on investment than SpectraCure. However, Saniona AB is 1.09 times less risky than SpectraCure. It trades about 0.09 of its potential returns per unit of risk. SpectraCure AB is currently generating about 0.02 per unit of risk. If you would invest 242.00 in Saniona AB on November 9, 2024 and sell it today you would earn a total of 630.00 from holding Saniona AB or generate 260.33% 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. SpectraCure AB
Performance |
| Timeline |
| Saniona AB |
| SpectraCure AB |
Saniona AB and SpectraCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and SpectraCure
The main advantage of trading using opposite Saniona AB and SpectraCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, SpectraCure 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 SpectraCure will offset losses from the drop in SpectraCure'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 |
| SpectraCure vs. Maha Energy AB | SpectraCure vs. Saniona AB | SpectraCure vs. Kancera AB | SpectraCure vs. SolTech Energy Sweden |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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