Correlation Between Senzime AB and SpectraCure
Can any of the company-specific risk be diversified away by investing in both Senzime AB and SpectraCure 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 Senzime AB and SpectraCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senzime AB and SpectraCure AB, you can compare the effects of market volatilities on Senzime AB and SpectraCure 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 Senzime AB with a short position of SpectraCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senzime AB and SpectraCure.
Diversification Opportunities for Senzime AB and SpectraCure
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Senzime and SpectraCure is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Senzime AB and SpectraCure AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpectraCure AB and Senzime AB 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 Senzime AB are associated (or correlated) with SpectraCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpectraCure AB has no effect on the direction of Senzime AB i.e., Senzime AB and SpectraCure go up and down completely randomly.
Pair Corralation between Senzime AB and SpectraCure
Assuming the 90 days trading horizon Senzime AB is expected to under-perform the SpectraCure. But the stock apears to be less risky and, when comparing its historical volatility, Senzime AB is 2.29 times less risky than SpectraCure. The stock trades about -0.17 of its potential returns per unit of risk. The SpectraCure AB is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 204.00 in SpectraCure AB on August 29, 2024 and sell it today you would lose (39.00) from holding SpectraCure AB or give up 19.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senzime AB vs. SpectraCure AB
Performance |
| Timeline |
| Senzime AB |
| SpectraCure AB |
Senzime AB and SpectraCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senzime AB and SpectraCure
The main advantage of trading using opposite Senzime AB and SpectraCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senzime AB position performs unexpectedly, SpectraCure 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 SpectraCure will offset losses from the drop in SpectraCure's long position.| Senzime AB vs. GomSpace Group AB | Senzime AB vs. Hansa Biopharma AB | Senzime AB vs. Zealand Pharma AS | Senzime AB vs. BioInvent International AB |
| SpectraCure vs. KABE Group AB | SpectraCure vs. IAR Systems Group | SpectraCure vs. Mekonomen AB | SpectraCure vs. Clinical Laserthermia 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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