Correlation Between Santhera Pharmaceuticals and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Santhera Pharmaceuticals and Banque Cantonale 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 Santhera Pharmaceuticals and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santhera Pharmaceuticals Holding and Banque Cantonale, you can compare the effects of market volatilities on Santhera Pharmaceuticals and Banque Cantonale 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 Santhera Pharmaceuticals with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santhera Pharmaceuticals and Banque Cantonale.
Diversification Opportunities for Santhera Pharmaceuticals and Banque Cantonale
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Santhera and Banque is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Santhera Pharmaceuticals Holdi and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Santhera Pharmaceuticals 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 Santhera Pharmaceuticals Holding are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Santhera Pharmaceuticals i.e., Santhera Pharmaceuticals and Banque Cantonale go up and down completely randomly.
Pair Corralation between Santhera Pharmaceuticals and Banque Cantonale
Assuming the 90 days trading horizon Santhera Pharmaceuticals Holding is expected to under-perform the Banque Cantonale. In addition to that, Santhera Pharmaceuticals is 2.61 times more volatile than Banque Cantonale. It trades about -0.17 of its total potential returns per unit of risk. Banque Cantonale is currently generating about 0.05 per unit of volatility. If you would invest 8,935 in Banque Cantonale on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Banque Cantonale or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santhera Pharmaceuticals Holdi vs. Banque Cantonale
Performance |
| Timeline |
| Santhera Pharmaceuticals |
| Banque Cantonale |
Santhera Pharmaceuticals and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santhera Pharmaceuticals and Banque Cantonale
The main advantage of trading using opposite Santhera Pharmaceuticals and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santhera Pharmaceuticals position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Santhera Pharmaceuticals vs. Basilea Pharmaceutica AG | Santhera Pharmaceuticals vs. Idorsia | Santhera Pharmaceuticals vs. Newron Pharmaceuticals SpA | Santhera Pharmaceuticals vs. Evolva Holding SA |
| Banque Cantonale vs. Santhera Pharmaceuticals Holding | Banque Cantonale vs. Newron Pharmaceuticals SpA | Banque Cantonale vs. Basilea Pharmaceutica AG | Banque Cantonale vs. Evolva Holding SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |