Correlation Between Sedana Medical and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Sedana Medical and Xvivo Perfusion 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 Xvivo Perfusion 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 Xvivo Perfusion AB, you can compare the effects of market volatilities on Sedana Medical and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sedana Medical and Xvivo Perfusion.
Diversification Opportunities for Sedana Medical and Xvivo Perfusion
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sedana and Xvivo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sedana Medical AB and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Sedana Medical i.e., Sedana Medical and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Sedana Medical and Xvivo Perfusion
Assuming the 90 days trading horizon Sedana Medical AB is expected to generate 2.82 times more return on investment than Xvivo Perfusion. However, Sedana Medical is 2.82 times more volatile than Xvivo Perfusion AB. It trades about 0.11 of its potential returns per unit of risk. Xvivo Perfusion AB is currently generating about 0.18 per unit of risk. If you would invest 1,170 in Sedana Medical AB on September 1, 2024 and sell it today you would earn a total of 114.00 from holding Sedana Medical AB or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sedana Medical AB vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Sedana Medical AB |
| Xvivo Perfusion AB |
Sedana Medical and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sedana Medical and Xvivo Perfusion
The main advantage of trading using opposite Sedana Medical and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sedana Medical position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.| Sedana Medical vs. Surgical Science Sweden | Sedana Medical vs. Bonesupport Holding AB | Sedana Medical vs. Swedencare publ AB | Sedana Medical vs. Oncopeptides AB |
| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |