Correlation Between Scandion Oncology and Lime Technologies
Can any of the company-specific risk be diversified away by investing in both Scandion Oncology and Lime Technologies 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 Lime Technologies 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 Lime Technologies AB, you can compare the effects of market volatilities on Scandion Oncology and Lime Technologies 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 Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandion Oncology and Lime Technologies.
Diversification Opportunities for Scandion Oncology and Lime Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scandion and Lime is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Scandion Oncology AS and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies 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 Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of Scandion Oncology i.e., Scandion Oncology and Lime Technologies go up and down completely randomly.
Pair Corralation between Scandion Oncology and Lime Technologies
Assuming the 90 days trading horizon Scandion Oncology AS is expected to under-perform the Lime Technologies. In addition to that, Scandion Oncology is 4.52 times more volatile than Lime Technologies AB. It trades about -0.01 of its total potential returns per unit of risk. Lime Technologies AB is currently generating about 0.04 per unit of volatility. If you would invest 25,829 in Lime Technologies AB on November 21, 2024 and sell it today you would earn a total of 11,321 from holding Lime Technologies AB or generate 43.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandion Oncology AS vs. Lime Technologies AB
Performance |
| Timeline |
| Scandion Oncology |
| Lime Technologies |
Scandion Oncology and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandion Oncology and Lime Technologies
The main advantage of trading using opposite Scandion Oncology and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandion Oncology position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Fluoguide AS | Scandion Oncology vs. Saniona AB |
| Lime Technologies vs. Vitec Software Group | Lime Technologies vs. MIPS AB | Lime Technologies vs. Sinch AB | Lime Technologies vs. Stillfront Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |