Correlation Between Scandion Oncology and Logistea A
Can any of the company-specific risk be diversified away by investing in both Scandion Oncology and Logistea A 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 Logistea A 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 Logistea A, you can compare the effects of market volatilities on Scandion Oncology and Logistea A 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 Logistea A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandion Oncology and Logistea A.
Diversification Opportunities for Scandion Oncology and Logistea A
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scandion and Logistea is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Scandion Oncology AS and Logistea A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistea A 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 Logistea A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistea A has no effect on the direction of Scandion Oncology i.e., Scandion Oncology and Logistea A go up and down completely randomly.
Pair Corralation between Scandion Oncology and Logistea A
Assuming the 90 days trading horizon Scandion Oncology AS is expected to under-perform the Logistea A. In addition to that, Scandion Oncology is 3.91 times more volatile than Logistea A. It trades about -0.33 of its total potential returns per unit of risk. Logistea A is currently generating about -0.05 per unit of volatility. If you would invest 1,550 in Logistea A on August 31, 2024 and sell it today you would lose (35.00) from holding Logistea A or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Scandion Oncology AS vs. Logistea A
Performance |
| Timeline |
| Scandion Oncology |
| Logistea A |
Scandion Oncology and Logistea A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandion Oncology and Logistea A
The main advantage of trading using opposite Scandion Oncology and Logistea A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandion Oncology position performs unexpectedly, Logistea A 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 Logistea A will offset losses from the drop in Logistea A's long position.| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Saniona AB | Scandion Oncology vs. Oncopeptides AB |
| Logistea A vs. Logistea AB Series | Logistea A vs. Corem Property Group | Logistea A vs. NP3 Fastigheter AB | Logistea A vs. NCAB Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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