Correlation Between Scandion Oncology and AroCell AB
Can any of the company-specific risk be diversified away by investing in both Scandion Oncology and AroCell AB 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 Scandion Oncology and AroCell AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandion Oncology AS and AroCell AB, you can compare the effects of market volatilities on Scandion Oncology and AroCell AB 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 Scandion Oncology with a short position of AroCell AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandion Oncology and AroCell AB.
Diversification Opportunities for Scandion Oncology and AroCell AB
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandion and AroCell is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Scandion Oncology AS and AroCell AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AroCell AB and Scandion Oncology 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 Scandion Oncology AS are associated (or correlated) with AroCell AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AroCell AB has no effect on the direction of Scandion Oncology i.e., Scandion Oncology and AroCell AB go up and down completely randomly.
Pair Corralation between Scandion Oncology and AroCell AB
Assuming the 90 days trading horizon Scandion Oncology AS is expected to under-perform the AroCell AB. In addition to that, Scandion Oncology is 2.88 times more volatile than AroCell AB. It trades about -0.23 of its total potential returns per unit of risk. AroCell AB is currently generating about 0.26 per unit of volatility. If you would invest 39.00 in AroCell AB on November 30, 2024 and sell it today you would earn a total of 19.00 from holding AroCell AB or generate 48.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandion Oncology AS vs. AroCell AB
Performance |
| Timeline |
| Scandion Oncology |
| AroCell AB |
Scandion Oncology and AroCell AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandion Oncology and AroCell AB
The main advantage of trading using opposite Scandion Oncology and AroCell AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandion Oncology position performs unexpectedly, AroCell AB 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 AroCell AB will offset losses from the drop in AroCell AB's long position.| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Fluoguide AS | Scandion Oncology vs. Saniona 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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