Correlation Between SenzaGen and Scibase AB
Can any of the company-specific risk be diversified away by investing in both SenzaGen and Scibase 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 SenzaGen and Scibase AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SenzaGen AB and Scibase AB, you can compare the effects of market volatilities on SenzaGen and Scibase 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 SenzaGen with a short position of Scibase AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SenzaGen and Scibase AB.
Diversification Opportunities for SenzaGen and Scibase AB
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SenzaGen and Scibase is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SenzaGen AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase AB and SenzaGen 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 SenzaGen AB are associated (or correlated) with Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of SenzaGen i.e., SenzaGen and Scibase AB go up and down completely randomly.
Pair Corralation between SenzaGen and Scibase AB
Assuming the 90 days trading horizon SenzaGen AB is expected to under-perform the Scibase AB. But the stock apears to be less risky and, when comparing its historical volatility, SenzaGen AB is 2.05 times less risky than Scibase AB. The stock trades about -0.04 of its potential returns per unit of risk. The Scibase AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Scibase AB on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Scibase AB or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SenzaGen AB vs. Scibase AB
Performance |
| Timeline |
| SenzaGen AB |
| Scibase AB |
SenzaGen and Scibase AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SenzaGen and Scibase AB
The main advantage of trading using opposite SenzaGen and Scibase AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SenzaGen position performs unexpectedly, Scibase 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 Scibase AB will offset losses from the drop in Scibase AB's long position.| SenzaGen vs. Simris Alg AB | SenzaGen vs. Immunovia publ AB | SenzaGen vs. Sedana Medical AB | SenzaGen vs. KABE Group AB |
| Scibase AB vs. Acarix AS | Scibase AB vs. Episurf Medical AB | Scibase AB vs. Xbrane Biopharma AB | Scibase AB vs. Scandinavian Enviro Systems |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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