Correlation Between Sedana Medical and Hansa Biopharma
Can any of the company-specific risk be diversified away by investing in both Sedana Medical and Hansa Biopharma 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 Sedana Medical and Hansa Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sedana Medical AB and Hansa Biopharma AB, you can compare the effects of market volatilities on Sedana Medical and Hansa Biopharma 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 Sedana Medical with a short position of Hansa Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sedana Medical and Hansa Biopharma.
Diversification Opportunities for Sedana Medical and Hansa Biopharma
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sedana and Hansa is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sedana Medical AB and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma AB and Sedana Medical 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 Sedana Medical AB are associated (or correlated) with Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of Sedana Medical i.e., Sedana Medical and Hansa Biopharma go up and down completely randomly.
Pair Corralation between Sedana Medical and Hansa Biopharma
Assuming the 90 days trading horizon Sedana Medical AB is expected to generate 1.38 times more return on investment than Hansa Biopharma. However, Sedana Medical is 1.38 times more volatile than Hansa Biopharma AB. It trades about 0.13 of its potential returns per unit of risk. Hansa Biopharma AB is currently generating about -0.09 per unit of risk. If you would invest 1,150 in Sedana Medical AB on September 3, 2024 and sell it today you would earn a total of 134.00 from holding Sedana Medical AB or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sedana Medical AB vs. Hansa Biopharma AB
Performance |
| Timeline |
| Sedana Medical AB |
| Hansa Biopharma AB |
Sedana Medical and Hansa Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sedana Medical and Hansa Biopharma
The main advantage of trading using opposite Sedana Medical and Hansa Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sedana Medical position performs unexpectedly, Hansa Biopharma 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 Hansa Biopharma will offset losses from the drop in Hansa Biopharma's long position.| Sedana Medical vs. Getinge AB ser | Sedana Medical vs. Elekta AB | Sedana Medical vs. AddLife AB | Sedana Medical vs. Biotage AB |
| Hansa Biopharma vs. Simris Alg AB | Hansa Biopharma vs. Immunovia publ AB | Hansa Biopharma vs. Sedana Medical AB | Hansa Biopharma vs. KABE 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |