Correlation Between Scandion Oncology and Saniona AB
Can any of the company-specific risk be diversified away by investing in both Scandion Oncology and Saniona 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 Saniona 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 Saniona AB, you can compare the effects of market volatilities on Scandion Oncology and Saniona 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 Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandion Oncology and Saniona AB.
Diversification Opportunities for Scandion Oncology and Saniona AB
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scandion and Saniona is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Scandion Oncology AS and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona 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 Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of Scandion Oncology i.e., Scandion Oncology and Saniona AB go up and down completely randomly.
Pair Corralation between Scandion Oncology and Saniona AB
Assuming the 90 days trading horizon Scandion Oncology AS is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, Scandion Oncology AS is 1.45 times less risky than Saniona AB. The stock trades about -0.31 of its potential returns per unit of risk. The Saniona AB is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 804.00 in Saniona AB on October 30, 2024 and sell it today you would lose (125.00) from holding Saniona AB or give up 15.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Scandion Oncology AS vs. Saniona AB
Performance |
| Timeline |
| Scandion Oncology |
| Saniona AB |
Scandion Oncology and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandion Oncology and Saniona AB
The main advantage of trading using opposite Scandion Oncology and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandion Oncology position performs unexpectedly, Saniona 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 Saniona AB will offset losses from the drop in Saniona AB's long position.| Scandion Oncology vs. Bavarian Nordic | Scandion Oncology vs. BioPorto | Scandion Oncology vs. Zaptec AS | Scandion Oncology vs. cBrain AS |
| Saniona AB vs. Vitrolife AB | Saniona AB vs. Biotage AB | Saniona AB vs. Sectra AB | Saniona AB vs. BioGaia 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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